FCA wants answers on financial operations and furloghed staff amid concerns over the impact of covid

The FCA has sent a survey to 300 brokers across the country to check their financial stability amid concerns that the coronavirus-crisis could have a drastic impact on their businesses, Insurance Times has learned. 

The survey asks a range of questions on topics including: 

  • Estimated revenues over the next three months
  • Fixed operating costs, cash flow estimates & expected savings operating costs
  • Furloughed staff 
  • Debt repayments due
  • Cash in bank at last month
  • Shortfalls in client money 
  • Top three insurers placing business with 
  • Key contact for financial matters 

The FCA says in its request to brokers for a response: ”In carrying out these objectives, the FCA is the prudential regulator for a large number of firms. Furthermore, we know that financial stresses can be a driver of poor conduct. We’re therefore seeking to understand the effect the coronavirus pandemic is having on the finances of General Insurance (GI) firms we prudentially regulate.”

The FCA Survey on GI Intermediary Prudential Data covers the period April to June. Online response are needed by May 4.

The survey focus is on retail, SME and large commercial. 

The survey comes as the FCA takes steps to monitor the insurance industry closely as it grapples with coronavirus crisis.

Earlier this month, the regulator sent a message to the industry warning them to treat customers fairly and pay SME business interruption claims when appropriate.