To ask the Chancellor of the exchequer, what discussions she has had with insurers on the potential impact of the cost of monthly insurance payments on levels of financial inclusion.

Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors, including insurers, on an ongoing basis.

Insurers make commercial decisions about pricing and the terms of cover they offer based on their assessment on the likelihood of a claim being made and the cost of those claims. The Government does not set the terms, conditions, or prices for insurance policies. However, the Government is determined that insurers treat customers fairly and firms are required to do so under Financial Conduct Authority (FCA) rules.

Last October, the FCA launched a market study on premium finance – a form of credit that allows insurance customers to spread the upfront annual cost of their premium. The FCA noted their concern that premium finance may not represent fair value for some customers. The FCA will publish an update on its work in due course.

The Government has also convened a committee of consumer and industry representatives to inform the development of a Financial Inclusion Strategy which will be published later this year. As part of this, the committee is considering barriers consumers face to accessing insurance products.