How many consecutive policy renewals trigger the FCA’s rules on renewal transparency?

The correct answer is based on the Financial Conduct Authority's (FCA) regulations which aim to ensure transparency and fairness in insurance renewals. Specifically, the rules on renewal transparency are triggered after three consecutive policy renewals. This means that after the third renewal of a policy, insurers must provide customers with clear and comprehensive information regarding their renewal quotes, including a comparison with previous years’ premiums and details of any changes in coverage. This regulation is designed to help consumers make more informed decisions and to encourage competition among providers. It aims to prevent situations where policyholders might remain with the same insurer out of inertia, potentially leading to poorer value for money over time. Thus, understanding the significance of the three-renewal threshold is essential for both insurers in compliance and consumers in safeguarding their interests.