The new regulations, being introduced by the Financial Services Authority which now oversees these areas, will give people more guidance and protection when they buy insurance and should make it easier for them to compare policies. The new regime applies to sales of home, motor, payment protection, critical illness, life and some travel insurances.
Under the new regulations, more information must be provided with a ‘Key Facts’ document that clearly sets out the features and benefits of the policy and any significant or unusual exclusions. Insurance providers will either give full advice or simply give information about their policies and let the customer decide which one they want. Although advice will no longer be given by some providers, Abbey will continue to give advice to insurance customers, believing that individual needs should be taken into account when deciding which policy is right.
Angus Porter, Abbey’s Customer Director, said; " We think the new regulations will bring real benefits to consumers. They’ll ensure that people receive details of exactly what is and isn’t covered before they buy insurance and will provide more detailed information about insurance policies that will make buying decisions easier.
"Abbey will provide advice along with the new ‘Key Facts’ documents as we believe that there is no substitute for talking with people to fully understand their needs. Abbey staff have already been fully trained in the new regulations and we’re confident that consumers can only benefit from what will be a much improved process."
