The Financial Conduct Authority (FCA) has written to chief executives in the insurance industry to ensure that customers are protected against harm as the UK continues to deal with the increased cost of living.
In his ‘Dear CEO’ letter, FCA customers and competition executive director Sheldon Mills outlined the regulator’s expectations of insurance firms. The expectations span customers in vulnerable situations, fair value, premium finance, underinsurance, lawsuits, and multi-occupancy houses.
Part of the letter reads: “Where insurance customers are in financial difficulty, firms should give them reasonable support. Firms considering how to support these customers should check our COVID insurance and premium finance guidance which sets out how firms should support consumers in economic difficulties as a result of COVID.
“As this guidance builds on existing principles and rules, including dealing with customers relatively and acting in the best interests of customers, some actions under the guidance may also be relevant for the treatment of customers in financial difficulty due to cost-of-living pressures.”
The regulator feared that it will quickly intervene in cases of poor practice.