The FCA has today published its finalised guidance setting out its expectations for insurance firms when considering the fair treatment of existing customers in financial difficulty, due to Covid-19.
The guidance applies to the following firms operating in the insurance and premium finance markets:
- premium finance lenders that provide credit to fund the payment of insurance premiums in instalments;
- premium finance brokers that carry on regulated activities relating to credit granted for the purposes of financing insurance premiums in instalments;
- debt collectors; and
- other firms that may be involved in insurance arrangements and/or the provision of premium finance.
The guidance extends the requirements set out in the earlier publication, which we summarised in May, to 31 October 2020.
Helpfully, the new guidance clarifies the position on NOSIAs and explains that these must continue to be sent but should be accompanied with an explanatory note contextualising the situation given the financial situation of the customer.
The guidance takes effect from 11 August 2020.