Insurance companies may face action for putting their own interests ahead of their clients.

The Financial Markets Authority thinks customer welfare is being threatened by companies not telling consumers the risks or costs involved when renewing or changing policies.

It believes thousands of people could be out of millions of dollars.

Financial Markets Authority director of regulation Liam Mason told Mike Hosking all 11 companies they looked at had room for improvement.

He says there could be action but the companies are being responsive.

"So far, the response has been pretty positive. Firms are willing to pick up. Hopefully, they'll take the guidance from this and up their game."

 

LISTEN TO LIAM MASON TALK WITH MIKE HOSKING ABOVE