FCA opt-out ban - which products will be affected?

'Opt-out' refers to the way some optional extras are made available on policies, whereby consumers have to actively choose not to include the cover. The FCA said this put unfair pressure on consumers to buy the additional insurance, as the they would have to effectively act against what they saw as the better judgement of the insurance company.

From today, providers will no longer be allowed to automatically add these optional extras onto policies.

Best Price FS research shows that life insurance 'riders', which affect the conditions in which you receive a payout, will be affected. Examples are waiver-of-premium, with which premium payments would be waived for a period if the policyholder were off work through illness or injury, or terminal illness benefit, which pays out a portion of the insured sum.

Title indemnity insurance, an optional form of cover, also falls under the new ban. It designed to provide legal support and a payout if title defects delay the sale or purchase of a house or leads to legal action by the local authority.

Many current account come as they are, with no option to remove the additional features included. This is defined by the FCA as an unbreakable bundle, and this kind of selling doesn’t fall under the ban. However, where additional products which carry an extra charge can be added or removed, banks can no longer include these on an account without consent. Examples are travel insurance, mobile phone insurance and even separate cover for home appliances.