The Financial Conduct Authority (FCA) has reminded insurance firms that they must conduct a review of the value of their insurance products in light of the impacts of COVID-19, by 3 December 2020.
In addition, the FCA has confirmed additional measures to help customers in financial difficulty.
On 3 June 2020, the regulator published guidance setting out its expectations for insurers and insurance intermediaries to consider the value of their products in light of the current exceptional circumstances.
The guidance highlighted that the impact of the coronavirus pandemic could affect the value of insurance products for customers; in particular, where firms have been unable to provide benefits or where changed circumstances mean the product now provides little or no utility to customers.
The FCA said that firms should review their product lines, and act where products have not delivered the intended value to customers, including providing alternative benefits, reducing premiums or partial refunds of premiums paid.