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.
This is of crucial concern for the London Market where such arrangements will have to be closely examined (who is in the chain, what they do, what they get paid and whether this is commensurate with what they do and how this provides value to the end customer) and signed off by distributors at least once every 12 months.
The rules introduce a package of market remedies which include:
The rules relating to systems and controls and product governance will come into effect on 1 October 2021 (i.e. in just over two month’s time). The rules on pricing, auto renewal, premium finance 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.