FCA’s NEW GI Pricing Practices, Product Governance and Product Value Webinar

FCA’s NEW GI Pricing Practices, Product Governance and Product Value Webinar

The FCA has published the long-awaited policy statement General insurance pricing practices market study – Feedback to CP20/19 and final rules (PS21/5). These wide-ranging 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.

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 come into effect on 1 October 2021 and the rules on pricing, premium finance and auto-renewals on 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;
• What product governance arrangements will be including existing distribution 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.

Speaker bio

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.

Since the world went virtual Branko has so far provided over 150+ events to more than 10,000 insurance professionals and feedback has been superb:-

I have had the pleasure of attending two webinars hosted by Branko this year, both times on fairly 'heavyweight' topics - the Supreme Court decision on the BI Insurance test case and most recently on the FCA's new GI pricing practices. In my opinion, Branko is the epitome of a professional speaker - knowledgeable, engaging and enthusiastic about his subject, something which is essential when trying to convey often complex information. The tone and content of his webinars are always pitched at just the right level for his audience - not overly technical but at the same time imparting sufficient knowledge for you to feel that it was worthwhile attending. I'm looking forward to the next one. Sarah Offord-Jones FCII.

I attended the session provided by Branko for the Insurance institute of Northern Ireland. He covered in a very efficient and concise manner the Supreme Court decision on Covid and the consequences for the industry. The 1 hour passed too soon as was evidenced by the number of questions and comments from the audience. I would recommend Branko to any insurance body seeking practical information on this topic. You will not want to leave the session even for a coffee. Tom McGrath CBE, FCII.