In line with its continuing focus on fairness in pricing and customer value, the FCA has published a thematic review on the general insurance distribution chain (TR19/2). The review contains a clear warning to firms involved in the design and sale of general insurance products that they must do more to protect customers from harm.
That warning is further emphasised in its Dear CEO letter, which sets out expectations of general insurance firms and reminds them of their responsibilities under both the new rules introduced by the Insurance Distribution Directive (IDD) and the Senior Managers and Certification Regime (SMCR). Alongside the thematic review, the FCA has published proposed guidance (GC19/2) for insurance product manufacturers and distributors (including, for example, retail banks) to clarify its expectations in terms of product development and distribution approaches.
The FCA has indicated that it intends to conduct further supervisory activities in this area and will intervene using its full range of enforcement tools to ensure firms meet their regulatory obligations.
Our “at a glance” guide (which can be found here) provides a summary of the thematic review and guidance consultation, as well as the implications for insurance manufacturers and distributors. The deadline for responses to GC19/2 is 9 July 2019.