The FCA issued a reminder late last month stressing that firms have until 3 December to complete a review of the value offered by their products, taking account of the impact of coronavirus.
This relates to guidance issued by the FCA back in June highlighting the likely impact of Covid-19 on insurance products’ value to consumers. A key concern was that constraints imposed by the pandemic might restrict the delivery of benefits or reduce products’ utility to policyholders.
The FCA has said it expects firms to review their product ranges and take action where products failed to deliver intended value to customers – for example, by reducing premiums, offering partial refunds or providing alternative benefits.
This expectation remains very much in place. The regulator requires firms to have completed this exercise by 3 December – and thereafter to continue monitoring product value, taking prompt and appropriate action wherever necessary.
The FCA has also stressed firms’ obligation to take on board its guidance on dealing with customers in financial difficulty.
It’s essential all firms have completed their product value reviews by the beginning of next month – and fully documented this process and any decisions and actions taken as a result.
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