The Financial Conduct Authority (FCA) has proposed to extend by a further three months temporary measures designed to assist customers holding insurance and premium finance products and who may be in temporary financial difficulties because of the Coronavirus (Covid-19). Members may access the updated guidance by clicking here.
The FCA said in a statement that firms should continue to consider what options they can offer customers. Where payment deferral is not in the best interest, the measures that could be taken may include 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, firms will be expected to grant a payment deferral of between one and three months, unless it is obviously not in the customer’s interest to do so.
The FCA is seeking comments by 5pm on Tuesday 28th July on its proposal to extend this guidance until 31 October 2020. BIBA will be making an official response and members should send any comments to David Sparkes as soon as possible at [email protected].
BIBA members’ compliance and regulation queries should be directed to: [email protected].
