The regulator cites the example of a car insurance policyholder who might no longer need an add-on such as key cover or who could be moved from fully comprehensive to third party fire and theft cover. Other UK firms have offered to amend policies to reflect lower mileage without levying fees. Freddy Macnamara, founder of Cuvva, which offers flexible insurance products, has been one of the most vocal critics of the insurance industry, suggesting profits from car insurance are subsidising losses elsewhere. Paying by instalment can often add 20% or more to the cost of an annual car or home insurance policy. The FCA measures will be reviewed over the next three months as the coronavirus crisis unfolds and may be revised.

Source: Forbes May 14, 2020 12:20 UTC