FCA Protection for Insurance Customers in Financial Difficulty

Published / Last Updated on 11/01/2023

The FCA is updating guidance for the insurance industry, introduced during the Covid-19 pandemic, to support insurance customers in financial difficulty.

The cost of living ‘financial squeeze’ is raising concerns that people will cut costs by cancelling valuable and much needed insurance policies in much the same way as they did during the covid-19 lockdown and furlough period.


One of the proposals is to require insurers to offer alternative lower cost arrangements for policyholders that contact insurers to cancel policies or those where direct debits have been cancelled meaning no premiums being paid and policies about to automatically lapse i.e., cancel.

We believe this makes sense and could even go further by offering premium holiday periods.

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