Which specific requirement applies to consumers regarding policy renewals under FCA rules?

Under the Financial Conduct Authority (FCA) rules, consumers must be encouraged to shop around after specific renewals to ensure they are getting the best possible deal on their insurance products. This requirement is aimed at promoting competition in the insurance market, helping consumers make informed choices, and ensuring they are not automatically renewing policies at potentially higher rates without considering other options.

Encouraging consumers to compare prices and features from different providers can lead to better deals and improved overall satisfaction with their insurance cover. This practice is especially significant in the context of motor insurance, where policyholders may have various choices available to them each year.

The other options do not align with the FCA's focus on encouraging competitive practices and consumer awareness. For instance, a loyalty discount may not be universally guaranteed or applicable, and requiring a physical signature is not a standard practice under FCA guidelines. Similarly, there is no mandate for proof of previous policies as a condition of renewal, making these alternatives less relevant to the FCA's consumer protection objectives.