FSCA wants to see more progress on credit life insurance
Regulator says more banks can treat customers fairly by adjusting premiums as loans are paid off
The Financial Sector Conduct Authority (FSCA) has said there is more scope for the banking industry to reduce or eradicate what it deems unfair practices linked to the way premiums are calculated for credit life insurance.
Selling insurance to borrowers to settle outstanding debt in the event a client dies has been a lucrative business pegged to many forms of lending, and is often sold by the bank providing the credit. But the FSCA has taken issue with the way in which premiums are calculated over the life of a contract, according to new standards that have come into effect for treating customers fairly. ..