Last checked at (Sharecast News) - The Financial Conduct Authority has warned general insurers to treat customers fairly as people change their behaviour in response to the coronavirus crisis.
The City watchdog said customers' ability to claim should not be affected by changes such as having to work from home and that companies should be clear about policy exclusions for new and existing policies. The FCA also told insurers including Aviva, RSA, Direct Line to have measures to keep staff safe and ensure continuity of service.
Christopher Woolard, the FCA's interim chief executive, said: "Customer behaviour is changing. 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.
For travel insurance, companies should tell customers about policy exclusions for coronavirus on travel booked before the outlook, the FCA said. If a claim arises after the renewal date for annual travel insurance companies should treat customers fairly if the customer had a reasonable expectation the cover would continue.
Motor and home insurers should not reject claims if a customer has changed how they use their vehicle or have work-related equipment at home. Private hospitals asked to support the NHS may have to delay non-urgent treatments under health insurance. Insurers should tell customers in a timely and compassionate way, the FCA said.
If companies are suspending products to reduce their risks they may not be treating customers fairly if they do not renew an existing policy, the regulator said. Customers renewing a policy should have coverage explained to them and they should not be sold alternative products that fail to meet their needs.
Woolard said: "We expect all firms to be clear and not misleading whenever they communicate and be fair and professional in how they deal with their customers. Any customer concerned about their insurance should consider contacting their provider with any questions they may have."
25 Mar 2024 15:49
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