Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 13 July 2020 to Question 71066 on Life Insurance: Mental Illness, what steps his Department is taking to encourage insurance companies to take into consideration the effect of the covid-19 outbreak on people who have taken their own lives when processing life insurance claims.

The Government is in continual dialogue with the insurance sector regarding its response to this unprecedented situation.

The Financial Conduct Authority (FCA) rules require insurers to handle claims fairly and in light of COVID-19, insurers must consider very carefully the needs of their customers and show flexibility in their treatment of them. The Government is working closely with the FCA to ensure that the rules are being upheld and supports the regulator in its role.

In July 2020, the FCA launched further consultation on updated guidance for firms on the treatment of vulnerable consumers. This guidance also takes into consideration the impact of the effects of the COVID-19 pandemic on the vulnerability of consumers. The FCA expects to finalise this guidance by early 2021.