Financial Conduct Authority (FCA) - Product value and coronavirus: draft guidance for insurance firms.
The FCA has issued draft guidance setting out its expectations for insurers and insurance intermediaries to consider the value of their products in light of the exceptional circumstances arising out of coronavirus (Covid-19). The guidance applies to all firms carrying on regulated activities relating to general insurance and protection policies and will come into force by the end of May 2020. The guidance will be reviewed in the following 3 months and may be revised, if appropriate.
The FCA wants to act quickly to protect consumers in these difficult times and considers that the delay involved in publishing a formal consultation accompanied by a cost benefit analysis would be prejudicial to the interests of consumers. They are therefore not doing so and any comments must be submitted by 5pm on Friday 15th May.
The draft guidance can be found here.