Firms on notice to review fair treatment of closed-book customers

Life insurers who have closed books must review their business practices in light of the Financial Conduct Authority’s finalised guidance for the fair treatment of closed-book customers and make any necessary changes by 9 March 2017. The guidance is part of a programme to ensure that customers with life insurance products that are closed to new business are treated fairly and don’t receive less attention than customers who have recently taken out a new product. The regulator wants to prevent vulnerable customers, such as those trapped unwillingly in long-term contracts, from being taken advantage of.