FCA's NEW GI Pricing Practices, Product Governance and Product Value
New rules came into force affecting Product Governance on 1 October 2021 and these rules apply to commercial and personal lines insurances. The rules are wide-ranging and also seek to 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.
The rules introduce a package of market remedies which include:-
- A requirement that when a firm offers a renewal price to a customer 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 products and this will include onerous considerations in respect of distribution and remuneration arrangements;
- Detailed reporting requirements to support the ongoing supervision of the home and motor insurance markets (to include reporting by intermediaries on premium finance and fees/charges that are levied).
The rules relating to product governance came into effect on 1 October 2021 and the rules on pricing, premium finance and auto-renewals will apply from 1 January 2022.
Learning objectives - by the end of this webinar you will gain an overview of:-
- The new rules to end ‘price walking’ whereby existing customers pay more than new customers;
- Product governance arrangements to include distribution and remuneration arrangements;
- Above all, an understanding of “value” when it comes to all forms of general insurance.
It is relevant to anyone in GI to include brokers and insurers and anyone with an interest in this area.
Branko Bjelobaba FCII started his insurance career in 1987 and has worked across the sector including stints at PwC and GISC and has led his own consultancy practice since 2004. He works closely with AMII, BIBA and the CII and has provided hundreds of well-received (even entertaining!) training events throughout the UK. He is a recipient of the Thomson Reuters Compliance Personality of the Year Award, the London Market People Award for Legal and Compliance and was Highly Commended in the CII Public Trust Awards 2021.
This demonstrates the quality of an event and that it meets CII member CPD scheme requirements.
1 hour's CPD can be claimed for this event if relevant to your learning and development needs.
It is recommended that you keep any evidence of the CPD activity you have completed and upload copies to the recording tool as the CII may ask to see this if your record is selected for review. Details of the scheme can be viewed online at www.cii.co.uk/cpd.