FSA Factsheet on Flooding

FSA have observed that changing weather patterns may lead to higher and more frequent claims in buildings and contents insurance. The FSA have issued factsheet that outlines some areas for general insurers to consider to make sure they give their customers clear and accurate information about the scope of what is covered and any significant exclusions. Some of FSA�s findings suggest insurers may not be treating customers fairly in this aspect of their business. In particular they identified two key areas that insurers should consider to make sure they are giving their customers clear and accurate information. They should:  Use clear and unambiguous language; and  Highlight the significance of lapsing a policy. General Insurers have been asked to:  Review the wording in the questions they ask customers to determine their eligibility for cover (either in your call centre script, online questionnaires or equivalent) and review policy terms and conditions to make sure the wording is clear and unambiguous.  Make sure at the time of renewal they consider how to make flood-affected customers aware of the risks of allowing a policy to lapse in a clear and fair way.  Update their FSA supervisor on any actions the firm has taken on the issues raised in the factsheet.

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