Insurers must support customers during cost of living crisis - FCA
By Abigail Townsend
Date: Thursday 29 Sep 2022
(Sharecast News) - Insurers must support households struggling with the cost of living crisis, the financial regulator has warned.
The Financial Conduct Authority said it was concerned that households, in the face of surging food, energy and mortgage costs, would cut back on insurance cover.
It has therefore written to all insurance industry chief executives to ensure customers are protected "from unnecessary products or add-ons and unfair penalties" during the crisis, and warned it would "quickly intervene" if poor practise was discovered.
The FCA also said insurance providers should help customers in financial difficulties, including reassessing their needs, considering if other products would suit them better, and waiving any fees associated with adjusting policies in line with reassessments.
Sheldon Mills, FCA executive director, consumers and competition, said: "Customers who are struggling with their finances should contact their providers as soon as possible. We encourage customers to continue to shop around to find the best deal.
"Firms should not unfairly penalise them for any payment difficulties but instead work with them to find solutions."
The warning follows a similar announcement from the energy regulator Ofgem earlier this week, which said providers must do more to help customers in payment difficulties.
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