Insurance industry launches guides to help abuse victims

The Association of British Insurers (ABI) has released new guidance for insurance companies to help them better support customers and employees who are experiencing economic and domestic abuse. The guides aim to prevent insurance and pension products from being used as tools of control by perpetrators.

How abusers exploit financial products

Economic abuse, a form of domestic abuse, involves controlling another person's finances, income, or assets. Perpetrators can manipulate insurance and pension products to cause harm. This can include redirecting insurance claim payments for their own benefit or forcing victims to make pension withdrawals. Abusers may also cancel or alter home, motor, health, protection, or mortgage-related cover without the victim's knowledge, leaving them vulnerable to debt when a claim is needed. In some instances, an abuser might remain on a joint policy after a separation, using it to block the victim from accessing information or making necessary changes. They may also intercept post or control online account access, preventing important policy updates from reaching the victim.

The guides highlight that requiring repeated evidence or consent across different departments within an insurance firm can create further barriers for victims. This may force them to re-engage with their abuser or repeatedly explain their situation. In extreme cases, a joint life policy could create a financial incentive for a perpetrator to cause serious harm to their victim.

Development and aims of the guidance

These new guides were developed in collaboration with the ABI's members, alongside the charity Surviving Economic Abuse (SEA) and the Employers’ Initiative on Domestic Abuse (EIDA). The resources were launched in Parliament on Wednesday. Surviving Economic Abuse estimates that approximately one in six women in the UK has experienced economic abuse from a current or former partner.

Sam Smethers, chief executive of Surviving Economic Abuse, stated that while progress is being made through work with the insurance industry and the ABI, more action is needed. She urged firms to go beyond regulatory requirements by embedding good practices, strengthening staff training, and designing products that reduce opportunities for abuse.

The customer guide recommends that training for insurance firms should extend beyond customer-facing teams to include product, underwriting, operations, risk, compliance, and senior leadership. Training should cover not only customer interactions but also account activity, product misuse, and how insurance products can be exploited.

Support for employees

In addition to the customer-focused guide, the ABI has also published guidance on how firms can better support their own employees experiencing domestic abuse. Developed with EIDA, this guide aims to help companies create supportive workplace environments and foster cultures where staff affected by abuse feel able to seek help. The document notes that for some employees, their workplace may be the only safe space they have. However, abuse can impact work performance, potentially leading to job loss if employers are unaware. Employees may also face difficulties with work attendance and availability due to the abuse.

Industry and government response

Hannah Gurga, ABI director general, said the guides will assist insurance and pension firms in recognising the signs of abuse, responding with care, and providing necessary support to customers and employees. Lucy Rigby, Economic Secretary to the Treasury, commented that abusers 'weaponise anything they can, including insurance,' to maintain control. Susan Bright, chief executive of EIDA, welcomed the ABI's leadership in developing this guidance, highlighting the crucial role employers play in addressing domestic abuse.

James Dipple-Johnstone, chief ombudsman of the Financial Ombudsman Service, stated that financial services firms have an important role in recognising and responding to economic abuse. He added that when firms fail to do so sensitively, individuals can feel isolated and unsupported. Helen Bellamy, customer inclusion lead at wealth manager Quilter, noted that economic and domestic abuse can have devastating and lasting consequences on financial wellbeing, and providers have a responsibility to treat affected customers with understanding and care.

What happens next

The guides are part of broader efforts to improve outcomes for vulnerable customers and align with the Government's Financial Inclusion Strategy. Insurance and pension firms are encouraged to implement the guidance to enhance their support for individuals affected by economic and domestic abuse.