Today the Financial Conduct Authority (FCA) issued a statement setting out measures for insurance companies which takes effect from 18 May. These included requiring insurers to consider:
- Reassessing the risk profile of customers. The FCA notes this may have changed because of Covid-19 creating scope to offer customers “materially lower premiums”.
- Whether there are other products they can offer which would better meet the customer’s needs and revise the cover accordingly, e.g. a move from fully comprehensive cover to third party fire and theft.
- Waiving cancellation and other fees associated with adjusting customers’ policies.
- Granting customers a payment deferral unless it is obviously not in their interests to do so. That payment deferral should be for a period of between one to three months and be available to any customers up to 18 August 2020.