FCA issues Dear CEO letter on cost of living support
The Financial Conduct Authority ( FCA ) has sent a ‘Dear CEO’ letter to firms in the insurance sector, setting out expectations on the support firms should be providing to customers during this cost of living crisis.
The FCA warns of risks of customers underinsuring or going without cover altogether and the potential consequences of these actions.
Firms are also reminded of the forbearance measures brought in by the regulator to support customers in difficult circumstances owing to the Coronavirus pandemic. This included measure to support customers finding it difficult to meet monthly instalment payments, such as waiving fees, accepting nominal sums and/or removing the interest element of the monthly sum.
Much like the impact of Covid-19, the cost of living crisis will undoubtedly increase the number of customer who become vulnerable during this period and members may wish to consider this factor when dealing with customers facing financial difficulties, as the Dear CEO letter highlights. Members can remind themselves about the section on vulnerable customers in our Good Practice Guide here.
Members can read the Dear CEO letter here and the press release here.
(URL to follow once published on the FCA website)
BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk quoting their membership number.
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