insurance news Covid-19: FCA seeks to extend measures to help insurance customers who are struggling financially - Insurance Age breaking insurance news
Breaking-Finance.Com - The regulator wants the measures, which require firms to consider premium reductions and payment deferrals, to be extended to 31 October.
Breaking-Finance.Com - The regulator wants the measures, which require firms to consider premium reductions and payment deferrals, to be extended to 31 October. The Financial Conduct Authority (FCA) has proposed to extend a series of temporary measures to help insurance and premium finance customers who may be in financial difficulties due to Covid-19. The regulator first implemented the measures, which require firms to consider what options they can provide to customers, on 18 May. It is now seeking comments by 5pm on Tuesday 28 July on its proposal to extend this guidance until 31 October 2020. The watchdog further urged businesses to continue to consider payment deferrals, premium reductions and offering customers alternative products. The FCA said in a statement: “It is important that customers don’t leave themselves uninsured, and that their insurance cover meets their demands and needs.
According to the regulator, the measures could result in reduced monthly premiums for customers paying by instalments or a partial refund of the premium for those who have paid up front.
At the time of the initial implementation, Sheldon Mills, interim executive director of strategy and competition at the FCA, commented: “The majority of respondents expressed support for the proposals we published at the start of May.
“Many firms in the insurance industry have already taken some of the actions we are suggesting here to support customers, such as premium reductions, discounts, waiving fees, and payment deferrals.
“The measures confirmed today will provide urgent support to those that need it.”
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