FCA launches consultation on struggling insurance customers
By Abigail Townsend
Date: Wednesday 11 Jan 2023
(Sharecast News) - The financial watchdog has launched a consultation over how insurance companies support struggling customers.
The Financial Conduct Authority first introduced guidance during the Covid-19 pandemic to ensure customers in financial difficulties received appropriate support.
But it now wants to update that guidance to ensure insurers support all struggling customers and not just those facing problems due to the pandemic. Measures include not undervaluing insured items, not charging for unnecessary add-ons and not imposing unfair penalties.
Firms must also ensure information they provide customers with is "fair, clear and not misleading", thereby allowing people to make informed decisions.
Sheldon Mills, the FCA's executive director, consumers and competition, said: "Access to insurance is vital, providing peace of mind and security in case things go wrong.
"By extending our guidance, we are helping consumers keep that safety net and ensure they're properly supported when they claim, even as the cost of living increases."
The consultation will close after a month on 11 March 2023.
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