ICOBS 6A.6 rules on cancellation of automatic renewal took effect

The Financial Conduct Authority's rules on cancelling automatic renewal, set out in ICOBS 6A.6 of its handbook, took effect on 1 January 2022¹. The section applies to all general insurance contracts entered into with consumers that have an automatic renewal feature, except private health or medical insurance and pet insurance¹.

Under the rules, a firm must provide a consumer with easy and accessible methods for cancelling the automatic renewal feature in the consumer's contract¹. Those methods must include at least all the methods by which a consumer is able to purchase a new policy with the firm, and a firm must consider the needs of its customers when determining what cancellation methods it provides¹. The handbook describes an easy and accessible method as one that does not place unnecessary barriers on the consumer using it, giving as examples unreasonably longer call waiting times to cancel than to buy a new policy, and unnecessary questions or steps before the consumer can confirm their cancellation instructions¹.

A firm must allow the consumer to exercise the right to cancel the automatic renewal feature at the time the policy is purchased and at any time during the duration of the policy, and free of charge¹.

The handbook states the purpose of the section:

The application rule and the requirements on cancellation methods and cancellation timing are all dated 01/01/2022¹. The purpose provision carries a later date of 26/06/2026, and the section was last updated on 26/06/2026¹.

Why it matters for households

The rules cover general insurance policies bought by consumers that renew automatically, which includes products such as motor and home cover, but not private health or medical insurance or pet insurance¹. For policies in scope, the insurer has to offer cancellation of the automatic renewal through at least every channel a customer could use to buy a new policy, so a household that bought cover online cannot be limited to cancelling by phone¹. Cancelling the automatic renewal feature must be free of charge and available both when the policy is bought and at any point while it runs¹. The rules address the renewal feature itself rather than the underlying policy, and the handbook does not set out in this section what happens to cover already in force when that feature is cancelled. The section is framed as support for the Consumer Duty, including the expectation that consumers do not face unreasonable barriers when they want to switch¹.