Britain’s financial watchdog has told insurers to help customers struggling to pay the premiums on their policies, which could leave them unprotected.
The Financial Conduct Authority said it was writing to the bosses of insurance firms to make sure their customers are protected from unnecessary products or add-ons and unfair penalties.
Where poor practice is found, the FCA vowed to quickly intervene to protect customers from harm.
The watchdog said firms can help customers in financial difficulty by: reassessing customers’ needs, looking for products that better meet the customer’s needs, providing clear information to consumers about any additional costs, working with customers to avoid the need to cancel necessary cover and looking at removing cancellation fees.
Sheldon Mills, executive director of onsumers and competition at the FCA, said: “Customers who are struggling with their finances should contact their providers as soon as possible. We encourage customers to continue to shop around to find the best deal.”
Having been carried lower along with the wider market in recent days, shares in Admiral Group Plc and Direct Line Insurance Group PLC (LSE:DLG) were in the green on Thursday, while Sabre Insurance Group PLC (LSE:SBRE) was down 1.5%.