The Association of British Insurers has proposed a new minimum standard of information that would make motor and house insurance renewals easier.
The trade association has written to the Financial Conduct Authority making two suggestions that would further improve clarity for customers when renewing and taking out insurance.
These are: the inclusion of the last year's premium in renewal documents so a price comparison can be made; and a clear explanation that any introductory discounts may no longer apply.
The ABI cited a survey of over 2,000 adults, which found that a large majority (89%) would like to see the last price they paid for insurance printed on their renewal documents.
ABI deputy director general Huw Evans said: 'Insurers want to make renewing your insurance policy easier and clearer to understand by reminding you of last year's premium and flagging up introductory discounts.
'Most of us have home or car insurance and it is important we have the information we need when it comes to renewal.
'Our proposal, if adopted by the FCA across the market, would significantly improve transparency for millions of customers. We look forward to discussing it in detail with the FCA.'
The proposals are not only aimed at insurers, but brokers, banks and other financial intermediaries.
Responding to the letter, the FCA said: 'We welcome the ABI's contribution to the debate on helping consumers make better decisions at renewal time. We already have various pieces of work underway in this area and will continue to work with the industry as this develops.
'We will report back on our work in 2015 but we would encourage firms to develop innovative solutions that will benefit consumers in the meantime.'
In February, consumer group Which? also called on insurance companies to show last year's premium alongside renewal quotes and explain any differences. It said without this information people lacked incentives to shop around.
