Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans he has to prevent insurance companies from implementing high increases to annual indemnity insurance costs during the covid-19 outbreak for small companies who have not had to make a claim.

Insurers make decisions about the terms on which they will offer cover following an assessment of the relevant risks. The respective capabilities of insurers to assess risk is a key element on which they compete. This competition is important and leads to better products and lower prices for consumers.

Insurers must treat customers fairly and firms are required to do so under the Financial Conduct Authority’s (FCA) rules. In addition, the FCA has said that, 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 during this crisis and fully supports the regulator in its role.