The UK’s Financial Conduct Authority (FCA) will release interim findings from its investigation of pricing practices in home and motor cover before September, followed by a market study by the end of the year.

Concerned at “evidence of consumer harm arising from differential pricing in the retail general insurance sector”, the FCA wrote to insurance CEOs, launched its investigation and published a wider discussion paper on pricing fairness in financial services.

The action came after a preliminary review highlighted a range of problems.

“Our initial diagnostic work found that some long-term home insurance consumers pay much higher prices than those paid by new consumers,” the FCA said.

“Our market study will consider whether pricing practices are leading to competition working well in these markets and if they deliver competitive and fair outcomes for all consumers.”

Concerns around so-called “loyalty penalties” and a lack of transparency have also been raised in Australia.