Paymenshield has responded to the latest guidance from our Regulator, the Financial Conduct Authority (FCA), to ensure we’re offering the highest level of support to our policyholders where their financial circumstances have changed because of COVID-19 and they’re experiencing temporary financial distress.
This means extending our existing support beyond those customers who have a credit agreement with us (such as those paying for their annual Home Insurance policy over 12 months rather than in one lump sum) to customers with monthly policies with us such as our MortgageProtector (Mortgage Payment Protection Insurance) and IncomeShield (Short-term Income Protection) policies.
We’ve always adopted a supportive approach to customers who may be in financial difficulty to help provide information about their policy and payments and provide them with options to help make the best choice for their current needs and budget.
We plan to continue to take a supportive approach with our customers who are currently experiencing financial difficulties and will discuss their options to make temporary changes to their insurance coverage which may help them better manage their finances in the short term. We’ll also ensure we take the time to help our customers consider their overall needs in the longer term including any potential risks of underinsurance.
However, where a customer feels there is no option other than to cancel their policy because of their financial situation, or they feel it no longer meets their needs, we’ll continue responding to all cancellation requests without charge.
In addition, we’ll now also offer customers the option to defer up to 3 months of their insurance payments where they feel this would provide temporary relief. However, this would mean increased monthly payments after the deferred payment period for the remainder of the policy and therefore may not be appropriate for customers who are concerned about their longer-term financial situation.
We intend to stay close to the evolving guidance of the FCA and make sure we do what’s practically possible to support our customers during this continued period of uncertainty.