The Association of Mortgage Intermediaries (AMI) has voiced its support for those insurers that are allowing flexibility on deferred payments, such as allowing customers to repay the amount over a period of months rather than in one lump sum.
However, commenting on guidance from the Financial Conduct Authority (FCA) on the subject, Stacy Reeve (pictured), senior policy adviser at AMI pointed out that insurers must be clear on how they plan to deal with broker commission under these circumstances.
A steady level of transparency and communication between insurers and brokers will also ensure that customers will be more able to access advice on the suitability of payment deferral for their specific circumstances.
Reeve said: “Protection and general insurance advice during these times is more important than ever and intermediaries, many of whom have built strong relationships with their customers and are a trusted adviser, can help customers to understand the options available.
“Communication between insurer and intermediary is also key so that the help can reach those customers who need it the most.
“The FCA has been clear that [it] will want to see firms across the distribution chain working together to ensure that customers are treated fairly, so joined-up communication is vital.
“Intermediaries may wish to use this FCA guidance to ignite protection discussions with their customers.
“Customers may be actually or potentially vulnerable and the uncertain situation we find ourselves in can be very unnerving for many.
“Ensuring that customers maintain appropriate cover has got to be the aim.”