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FCA publishes PS23/9: Finalised insurance guidance on supporting customers in financial difficulty

Link(s):PS23/9: Finalised insurance guidance on supporting customers in financial difficulty | FCA PS23/9: Finalised insurance guidance on supporting customers in financial difficulty (fca.org.uk)

Context

The FCA has published a Policy Statement on insurance guidance for supporting customers in financial difficulty and has set out its response and finalised guidance.

The Policy Statement introduces a new guidance section that will appear in ICOBS (ICOBS 2.7).

Key points to note

The guidance is aimed at ensuring insurance customers in financial difficulty, including as a result of cost of living increases, have the support they need from firms.

This guidance comes into force on 31st July 2023, building on the FCA’s customers’ best interest rule and Consumer Duty rules, which include requirements for firms to act to deliver good outcomes for customers. 

This guidance follows a separate FCA consultation, in May 2023, on strengthening protections for borrowers in financial difficulty, for consumer credit (including premium finance).

Next actions

Firms should consider the new guidance in line with their implementation of Consumer Duty.