The regulator has published proposals on how insurers and brokers should help customers experiencing financial difficulty. The Financial Conduct Authority (FCA) published new guidance on how insurers and brokers should be helping customers facing financial difficulties in the continuation of the Covid-19 pandemic.
For insurance arrangements, this includes measures such as:
- Re-assessing the risk profile of the consumer to see whether they could be offered lower monthly payments
- Considering whether other products can be offered that better meet the consumer’s needs
- Providing help to avoid the need to cancel the necessary cover.
Where customers hold premium finance credit regulated agreements, help could include:
- Allowing the customer to make no or reduced payments for a specified period
- Suspending, reducing, waiving, or canceling any further interest or charges
- Allowing the customer, a reasonable time and opportunity to repay the debt, including by deferment of payment of arrears.
The FCA said that firms should make the different options available to consumers clear in their communications, including on their websites and apps, and encourage them to make contact if they are experiencing financial difficulties.