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

New rules affecting Product Governance came into force on 1 October 2021 applying to commercial and personal lines insurances and additional rules regarding the Pricing of home and motor apply from 1 January 2022. The rules are wide-ranging and seek to address 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).

Learning objectives

• 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.

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.

Buffett will be provided after the event which will be a great chance to network after the event.

To view our image and video capture consent statement, please click here.