FCA - General Insurance Pricing Practices

The FCA is introducing rules to improve the way general insurance markets function. This follows the FCA’s consultation (CP20/19) and the FCA’s final report of its Market Study (MS18/1.3), which it published in September 2020

The FCA states: “Our rules ensure that renewing home and motor insurance consumers are quoted prices that are no more than they would be quoted as a new customer through the same channel. We are also making it simpler for customers to stop automatic renewals if they wish to do so. We are also introducing new product governance rules to ensure that firms deliver fair value on all their insurance products. These rules supersede the ‘general insurance distribution chain: finalised guidance for insurance product manufacturers and distributors (FG19/05)’, which will be withdrawn when they come into effect.”

Some of these rules also apply to insurers and intermediaries of other general insurance and protection products.

Download our white paper for more information about who the new rules apply to and when they come into affect.

Auxillias is supporting clients assess fair value of their insurance products and work closely with a consultancy accounting firm that specialise in regulated products helping clients review its existing pricing and support them to arrive at fair pricing to comply with the new regulatory requirements on insurance.