The Financial Conduct Authority (FCA) announced a set of measures to help insurance customers who may be suffering financial difficulties as a result of coronavirus pandemic.
The measures include premium reductions, discounts, waiving fees and premium payment deferrals.
FCA explained these actions could result in monthly premium reductions for customers paying by installments or a partial refund of the premium for customers who have paid up front.
“Many firms in the insurance industry have already taken some of the actions we are suggesting here to support customers, such as premium reductions, discounts, waiving fees, and payment deferrals,” commented Sheldon Mills, interim executive director of Strategy and Competition at the FCA.
The measures come into force on Monday, May 18, 2020 and will be reviewed in the next three months and may be revised if appropriate.
Mills said the measures, which were confirmed on May 14, “will provide urgent support to those that need it.”
“As the FCA has recognized, since the start of the pandemic, insurers have taken wide-ranging action to support customers who may be facing financial difficulty,” said an ABI spokesperson.
“We have also set up industry-wide pledges in motor, home, travel, pet and business interruption insurance to assist customers during this difficult time,” the spokesperson continued.
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