FCA Feedback Wanted: Insurance Consumers in Covid Difficulties

The FCA has today announced proposals to extend a series of temporary measures to help customers who hold insurance and premium finance products and who may be in temporary financial difficulties because of coronavirus (Covid-19).

The original measures came into force on Monday 18 May 2020 and the FCA committed to reviewing them after 3 months.

Firms should continue to consider what options they can offer customers. Where payment deferral is not in the best interest, the measures that could be taken may include premium reductions due to changes in risk profile or offering an alternative product which would better meet the customer’s needs, as well as waiving fees associated with altering cover.

Where amendments to the insurance cover do not help alleviate the customer’s temporary payment difficulties, firms will be expected to grant a payment deferral of between 1 and 3 months, unless it is obviously not in the customer’s interest to do so.

It is important that customers don’t leave themselves uninsured, and that their insurance cover meets their demands and needs. Those struggling to afford their insurance or premium finance payments because of the impact of coronavirus should contact their insurer or insurance broker to discuss their options.

The FCA is seeking comments by 5pm on Tuesday 28 July on its proposal to extend this guidance until 31 October 2020.

About alastair walker 6129 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

Be the first to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.