On 3 June 2020, we published guidance setting out our expectations for insurers and insurance intermediaries to consider the value of their products in light of the exceptional circumstances arising from the coronavirus (Covid-19).
The guidance highlighted that the impact of the coronavirus pandemic could affect the value of insurance products for customers. In particular, where firms have been unable to provide benefits or where changed circumstances mean the product now provides little or no utility to customers.
We said that firms should review their product lines and act where products have not delivered the intended value to customers. This could include providing alternative benefits, reducing premiums or partial refunds of premiums paid.
Firms should complete their coronavirus related review of product lines and decide what action to take by 3 December 2020.
We said we would review this guidance and revise it if appropriate. We have now done this and do not propose to update this guidance.
However, the effects of coronavirus could continue to affect the value of insurance products and cause harm to customers. Firms should monitor this risk as part of their normal product governance processes, including the ongoing monitoring and regular review of insurance products, and act where necessary.
Additional guidance to support customers in financial difficulty because of coronavirus
Insurance and premium finance firms should also consider our additional guidance on dealing with customers in financial difficulty resulting from coronavirus, which we finalised today.