FSCS urges customers to ask key questions before switching insurers

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With the ongoing pandemic and the FCA’s pricing practices report in mind, FSCS wants customers to be ‘confident and in control’

The Financial Services Compensations Scheme (FSCS) is urging customers to ask questions before switching insurers.

It has put together a list of key question cards that customers can ask before they make the switch.

This is because the FSCS wants to ensure that customers feel confident and in control of their finances.

Caroline Rainbird, chief executive at FSCS, told Insurance Times: “The ongoing pandemic has made many people want to explore the different financial products and services available to themselves and for their families. This might be the first time they have seriously considered a pension, an investment, or speaking to an independent financial adviser. We want them to feel confident and it is more important than ever that they are aware of the protection FSCS offers.

“That’s why, at a time when consumers are thinking more about their money, we have put together a list of key questions, about levels of protection, that consumers could ask their provider before they make any decisions on taking out or switching financial products.”

It coincides with the FCA’s study on pricing practices which was published yesterday that ended ‘pricing walking’ and the loyalty penalty.

The questions include:

Does FSCS protect your business?
How much of my money is protected?
Which of your products are protected?
Am I still protected if I buy an insurance package, rather than an individual product?
What would happen to my policy if something happened to your business?
What happens if your firm fails and I have an accident? Will I be paid out?