ILC ARTICLE

FCA calls for greater insurer support

5th October 2022

The Financial Conduct Authority (FCA) is tightening its scrutiny on insurers as the cost-of-living crisis intensifies.

It is writing to insurance industry CEOs to ensure they are doing whatever is necessary to support their customers through these hard times. That means protecting them from unnecessary products or add-ons and not penalising them if premiums become unmanageable due to interest rate rises.

The FCA says it will not hesitate to intervene where it finds bad practice.

Sheldon Mills, Executive Director, Consumers and Competition at the FCA, said, “Customers who are struggling with their finances should contact their providers as soon as possible. Firms should not unfairly penalise them for any payment difficulties but instead work with them to find solutions. 

“We have a thriving and efficient insurance sector, and we want people getting the cover they need at a cost they can afford so both business and customers benefit.”

The FCA says companies can support customers by reassessing their needs, considering if alternate products may suit them better, providing clear information surrounding premium finance, and waiving fees around policy adjustments or cancellations.