The ABI has written to Andrew Bailey highlighting the issues its members are facing in meeting their duty to treat customers fairly, in the context of communications with customers over Brexit. The letter welcomes the December communications on authorisation of EEA branches of insurers, and says members will assume this will happen, even though it has not yet been made into law.
It then highlights that communications for new contracts and renewals will soon start to cover policies that will still be in force at the end of the Article 50 period. Motor, fleet and travel insurance are key examples. ABI feels there should a bespoke communication to explain the consequences of Brexit when the position is clearer, rather than have firms attempt to address is in new business and renewal letters to customers.
Finally, it notes that policies its UK members sell to EEA customers or which cover EEA risks may be sold by insurers that will lose the ability to sell into the EEA. It therefore feels relevant new and renewing customers should be warned that the insurer may be unable to pay claims or service contracts after Brexit.
FCA’s response does not specifically answer any of the questions, merely acknowledging that firms will need to consider the best way to bring relevant information to customers at appropriate times, and noting that it will take into account any uncertainty that existed at the time any relevant communication was made, when reviewing it in future.