Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential benefits of introducing a mandatory bereavement grace period for insurers.

The government is determined that insurers should treat customers fairly, including where they have suffered a bereavement, and firms are required to do so under Financial Conduct Authority (FCA) rules. The FCA requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive). FCA rules also require insurers to ensure their communications are clear, fair and not misleading. The FCA have published guidance for firms on the fair treatment of vulnerable customers, including those who may recently have experienced bereavement.

The FCA monitors firms to make sure they comply with these rules, and, where necessary, it has robust powers to take action.

More broadly, insurers make commercial decisions about the terms of cover they offer based on their assessment of the relevant risks. The government does not generally intervene in these decisions by insurance companies.