Measures such as premium payment holidays and waiving cancellation fees brought in to help customers
The Financial Conduct Authority (FCA) is extending the guidelines for insurance firms to help financially struggling policyholders which came into force on 15 May until the end of October.
Originally the FCA guidelines were set to last three months.
The range of measures include re-assessing the risk profile of consumers; considering whether there are other products available which would meet the customer's needs accordingly; working with customers to avoid cancellations with payment deferrals and, in addition to waiving cancellation fees, waiving other fees associated with adjusting a policy.
Read more about the FCA guidelines, which apply to all types of general and protection insurance, here.
Keith Richards, managing director of engagement for Chartered Insurance Institute (CII), said: "With many people who have either seen drops in their income, or income stopping entirely, any action an insurer can take to reduce even a small part of a household's financial strain, is one we should all champion.
"Without being prescriptive as to what actions firms have to take, but by giving them the flexibility to consider all options, the FCA has allowed insurers the opportunity to find solutions that work best for customers and themselves, rather than attempt a one size fits all policy.
"This versatility in the face of an unprecedented situation will mean firms can respond quickly to the needs of the individual and should be commended."
It is, however, currently unclear whether those who have already taken a payment holiday are able to extend it beyond three months.
