UK insurance firms must complete reviews by early next month detailing the value of their products in light of the impacts of the coronavirus pandemic, the Financial Conduct Authority (FCA) says.

In June the FCA set out expectations for insurers and intermediaries to take action where changed circumstances mean a product now has little or no use for customers, with reduced premiums, partial refunds or the provision of alternative benefits flagged as remedies.

Firms should complete their reviews and decide what action to take by December 3, the regulator said in a reminder last week.

The FCA has also finalised guidance on helping customers who may be in financial difficulty due to COVID-19 after previous advice expired at the end of last month.

The guidance says firms should not cancel policies solely because of non-payment without first considering actions to support customers who may be in financial distress.

Suggested options for customers at the end of a payment deferral who remain in difficulty include reducing or suspending further charges, permitting reduced or no payments and rescheduling the term.

“It is particularly important that firms are flexible and employ a full range of forbearance options, as the coronavirus pandemic and local or national responses to it evolve,” it says.