FCA Consultation Paper CP23/1 – Insurance guidance for the support of customers in financial difficulty

This consultation primarily affects insurers and insurance intermediaries.



In November 2020, the FCA introduced finalised guidance for insurance and premium finance firms to support customers in financial difficulty due to the coronavirus pandemic.  It is now consulting on replacing the insurance aspects of the Covid guidance with guidance extended to apply to all customers in financial difficulty, not just those due to Covid.

The FCA wants to help protect customers of non-investment insurance policies in financial difficulty and to provide clearer expectations of firms in supporting their customers. It considers that its proposals will help ensure firms put customers’ needs first and will support firms in acting to deliver good outcomes for customers as will be required under our Consumer Duty.

The aim of the guidance is to reduce the impact of financial difficulty on customers, help them maintain an appropriate level of insurance they can afford, and reduce the risk of customers losing appropriate insurance cover that is important to them.

The FCA is requesting feedback on its proposals by 11 March 2023 and will aim to publish a final Policy Statement in Q2, 2023.  If the guidance is made, it intends to bring it into force on 31 July 2023.


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