The Financial Conduct Authority (FCA) has announced proposals to extend a series of temporary measures to help insurance and finance customers who may be in temporary financial difficulties because of the coronavirus pandemic.
The original measures came into force on 18 May and the FCA is committed to reviewing them after three months. Currently, the financial regulator is seeking comments by 5pm on 28 July on its proposal to extend this guidance until 31 October.
“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,” said FCA in a statement released last Friday.
According to the regulator, firms should continue to consider what options they can offer customers.
Where payment deferral is not in the best interest, firms are advised to taken measures such as 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, FCA expects firms to grant a payment deferral of between one and three months unless it is not in the customer’s interest to do so.