The FSA has published a report entitled ICOB Review Interim Report: Consumer Experiences and Outcomes in General Insurance Markets (the Report). The Report presents interim findings from the FSA’s review of consumer experiences and outcomes in general insurance markets.
The Report states that greater risks of consumer detriment are found for those buying personal protection products like payment protection and critical illness than for those buying commoditised general insurance products such as household and motor policies. The FSA believes that these differences are enough to warrant the rebalancing of the ICOB rules. The FSA also advises in the Report that it is looking to remove most of the ICOB rules that require firms to go beyond the minimum requirements necessary to comply with the IMD and the Distance Marketing Directive.
In the Report the FSA advises that it will publish a Consultation Paper in June 2007 setting out its proposed changes to the ICOB sourcebook.