FCA outlines expectations for insurance industry amid cost-of-living crisis

The Financial Conduct Authority (FCA) has written to chief executives in the insurance industry to ensure that customers are protected against harm as the UK continues to deal with the increased cost-of-living.

In his ‘Dear CEO’ letter, FCA consumers and competition executive director Sheldon Mills outlined the regulator’s expectations of insurance firms. The expectations span customers in vulnerable circumstances, fair value, premium finance, underinsurance, claims, and multi-occupancy buildings.

Part of the letter reads: “Where insurance customers are in financial difficulty, firms should give them appropriate support. Firms considering how to support these customers should check our COVID insurance and premium finance guidance which sets out how firms should support consumers in financial difficulties as a result of COVID.

“As this guidance builds on existing principles and rules, including treating customers fairly and acting in the best interests of customers, some actions under the guidance may also be relevant for the treatment of consumers in financial difficulty due to cost-of-living pressures.”

The regulator stressed that it will quickly intervene in cases of poor practise.