Direct Line Insurance Group PLC (LSE:DLG) expects to pay around £30 million as it continues to carry out a review of past business after admitting charging some customers too much for their home and motor cover.
The insurer said the review follows the implementation of the Financial Conduct Authority pricing practices regulation from January 1, 2022.
Direct Line said today that an error in its implementation of these rules meant its calculation of the equivalent new business price for some customers failed to comply with the regulation.
As a result, those customers have paid a renewal price higher than they should have.
Redress will be paid to any affected policyholder, the firm said, with the current estimate of these payments in the region of £30 million of which half was provided for within the group's 2022 full year results.
It has also been ordered by the watchdog to trawl through five years’ worth of claims payments over fears motorists were underpaid following accidents.