In March 2007 the FSA published an interim report that presented findings from its review of consumer experiences and outcomes in general insurance markets. The results of the review led the FSA towards grouping general insurance products into two broad categories where the risks of consumer detriment are different. It was found that there was a greater risk of consumer detriment for those buying personal protection products such as payment protection and critical illness cover than for those buying more commoditised, general insurance products such as household or motor policies. The FSA considered these differences enough to warrant a “rebalancing” of the ICOB Rules.
A consultation paper is set to be published in June 2007 but (at the time of writing) this has not yet been released. We anticipate commenting further upon this in the next bulletin. The FSA predicts that any rule changes in this regard are likely to be made in December 2007.