FCA has updated its guidance aimed at insurers who have made deductions from business interruption insurance claim payouts for some types of Government support that policyholders benefited from.
Back in August 2020, FCA noted that insurers should at all times treat customers fairly, and will need to assess whether it is appropriate to make deductions on a case by case basis. And where a deduction is appropriate, firms need to consider their approach to making deductions on a case by case basis too.
FCA has since clarified that certain grants should not be treated as turnover or applied as savings against fixed business expenses. Now several insurers have agreed not to deduct specific grants.