In this comprehensive and interactive webinar, Branko Bjelobaba FCII focuses on the long-awaited policy statement published by the FCA – General Insurance Pricing Practices Market Study – Feedback to CP20/19 and Final Rules (PS21/5). The 87 pages of new rules address what has been described as the ‘loyalty penalty’ paid by existing general insurance product customers and aim to ensure that customers receive fair value in the insurance products they buy.

Description

The rules introduce a package of market remedies which include:

• A requirement that when a firm offers a renewal price for home and motor it can be no greater than the equivalent new business price for a new customer
• Additional product governance rules that require firms to have processes in place to deliver products that offer fair value to customers with these new processes applying to all general insurance and pure protection products
• Rules to enable firms to offer accessible and easy options for customers wishing to cancel auto-renewal
• Onerous reporting requirements to support the ongoing supervision of the home and motor insurance markets

The rules relating to systems and controls and product governance (in addition to premium finance) came into effect on 1 October 2021. The rules on pricing, auto renewal and reporting will come into effect on 1 January 2022, with a transitional provision (until 17 January) for the rules on pricing and auto renewal disclosure.

Learning objectives

• The new rules to end ‘price walking’ whereby existing customers pay more than new customers
• What significant changes to internal policies have to be made
• What product governance arrangements will be, including existing distribution arrangements
• An understanding of ‘value’ when it comes to all forms of general insurance

Speakers

• Branko Bjelobaba FCII, Senior Consultant on FCA Compliance, Branko Limited

Audience

This webinar is relevant to anyone working in general insurance to include brokers, insurers and anyone with an interest in this area.

Please note: this is a repeat of the session held on 19 August 2021.