In this comprehensive and interactive webinar, Branko Bjelobaba FCII gives an update on the FCA’s general insurance consumer duty and multi-occupancy.
Sheldon Mills, Executive Director of Consumers and Competition, FCA, warned that firms who ignore the Duty or who pose the most harm can expect swift action. He says: “Our supervisory and enforcement approach will be proportionate to the harm – or risk of harm – to consumers, with a sharp focus on outcomes. We will prioritise the most serious breaches and act swiftly and assertively where we find evidence of harm or risk of harm to consumers. In some cases, firms can expect us to take robust action, such as interventions or investigations, along with possible disciplinary sanctions. The 52 million financial services consumers in the UK rely on the sector to deliver good outcomes and should be even better protected from harm, particularly in these challenging economic times. The Duty will mean that consumers should receive communications they can understand, products and services that meet their needs/offer fair value, and they get the customer support they need when they need it.”
The current cost of living squeeze makes it all the more vital consumers get fair value, and this should also benefit the competitiveness of the industry as firms strive to offer the best to compete for customers. Portfolio letters were sent on 20 September 2023 highlighting key areas required for improvement – market-wide and then personal/commercial/wholesale specific.
In this session, Branko also covers the new rules that will be effective from 1 January 2024 on multi-occupancy insurances following intervention by the government – these new rules will impact 5 million leaseholders. Leaseholders will be defined as customers and firms will have to act in their best interests and no commission sharing will be allowed with PMAs who will have to charge transparent fees for their services. Insurers and brokers will also need to provide more information about policies to leaseholders, including detail of all remuneration.