The Financial Conduct Authority (FCA) has revealed proposals to extend a series of temporary measures to help customers who hold insurance and premium finance products and who may be in temporary financial difficulties because of coronavirus.
The original measures came into force on Monday 18 May 2020 and the FCA committed to reviewing them after three months.
The FCA said 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.
It regulator said it is important that customers don’t leave themselves uninsured, and that their insurance cover meets their demands and needs. Those struggling to afford their insurance or premium finance payments because of the impact of coronavirus should contact their insurer or insurance broker to discuss their options.
The FCA is seeking comments by 5pm on Tuesday 28 July on its proposal to extend this guidance until 31 October 2020.