This report presents the findings from our thematic review which looked into whether general insurance intermediaries and insurers provide timely and appropriate information to their customers, when arranging or providing premium finance.
We were concerned that if firms are not meeting the information needs of their customers, then those customers may not be achieving fair outcomes when choosing to pay in instalments when buying insurance.
This report is aimed at general insurance intermediaries, insurers, relevant trade associations and consumer bodies.
We reviewed 43 firm websites, looking at insurers and intermediaries’ online sales journeys up to the point where the customer was required to input their payment details. In doing this we assessed whether firms were providing information to enable customers to make informed decisions regarding the options for paying for their general insurance product.
Our work identified that where arranging or providing premium finance for their retail customers, firms are not always meeting our expectations in ensuring their customers are able to make informed decisions.* In summary firms had not always provided clear and appropriate information:
These findings highlight that there is an increased risk that customers may not be achieving fair outcomes when purchasing insurance and linked finance. The shortcomings in information may act as a barrier to informed decision making as customers may, for example:
*References to potential shortcomings in compliance with our Consumer Credit sourcebook and the Consumer Credit Act apply to firms providing credit under regulated credit agreements or acting as credit brokers.
We expect firms to consider the issues we have identified and to take action to address the shortcomings and ensure they are complying with their regulatory requirements in this area.
We will also be taking the following actions as a result of our findings:
Copyright © 2016 FCA. All Rights Reserved.