FCA urges insurers to treat customers fairly during Covid-19 crisis

The FCA said insurance customers might change their behavior because of the coronavirus outbreak, so insurance companies should keep that in mind when considering payments.

Christopher Woolard, CEO of the FCA, said: “We expect insurance firms to recognise this and treat their customers fairly, recognising the circumstances customers may find themselves in. We would not expect to see a customer’s ability to claim affected by circumstances over which they have little control.”

The FCA said that insurers should take into account that customers who are relying on annual travel insurance have different circumstances this year. “Where appropriate, renew or consider claims under the terms of the original policy for these travel arrangements,” it said.

The Association of British Insurers added that some insurers had to stop selling policies, especially travel insurers. “Insurance is based on assessing the possibility of an event occurring. Insurers take account of when any risk becomes more of a probability than a possibility and then make commercial decisions”, it said.