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Coronavirus and customers in temporary financial difficulty

FCA


28 August 2020

On 11 August, the FCA published finalised guidance setting out measures to help customers who hold insurance and premium finance products and who are in temporary financial difficulty because of coronavirus. The effect is to extend the measures effected in May until 31 October 2020 although certain, specific parts will continue beyond that date.

When the proposals for this updated guidance were published, the FCA took the opportunity to encourage input on their related guidance for firms issued in June 2020, to help inform their review. This earlier guidance set out the regulator's expectations for insurers and insurance intermediaries to consider the value of their products in light of the exceptional circumstances arising from Covid-19. Firms were asked to complete their review of product lines and decide on resulting actions by no later than 3 December 2020. The regulator intended to review this guidance in the 6 months after publication.

John Burgum, Actuarial Consultant, comments: "Ensuring customers have continued access to claims lines after implementing working from home arrangements, clearly communicating benefits available under policies and reviewing sales for short deferred period are some of the measures protection providers have taken to support members.  As part of their response to the current extraordinary circumstances, providers must ensure they prioritise the imminent deadline and have evidence of their reviews and actions to provide to their conduct regulator when required."

 

John Burgum

For more information
John Burgum
Consultant Actuary

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