Regulatory AlertsFS20/7: Product Value and Coronavirus: Guidance for Insurance Firms
The Financial Conduct Authority issued finalised guidance requiring insurance firms to review the value of non-investment insurance products impacted by the coronavirus pandemic. Firms must assess whether material reductions in risk have rendered products of little or no utility to customers and take appropriate actions, such as partial refunds or benefit adjustments, by 3 December 2020. The regulator clarified that reviews should be conducted at a product level rather than for individual customers, while allowing for ongoing assessment of long-term impacts beyond the initial six-month review period.
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