The FCA has published a consultation paper on proposals requiring firms to report General Insurance value measures data to the FCA and to use the value measures data as part of the monitoring and governance of their insurance products.
The FCA’s aim is to address poor product value and quality and to reduce the risk of unsuitable GI products being bought or sold. The consultation follows on from an earlier and narrower pilot scheme that covered only home, home emergency, personal accident and cover for lost keys. The FCA found the pilot had a positive impact and improved transparency and awareness of different indicators of product value. The expanded scheme will cover more types of insurance including motor, travel, dental and pet insurance.
By requiring more complaints data about individual insurance products to be published, the intention is to encourage insurers to improve their terms. This is part of an increasing focus for the FCA on overall product value, which the FCA sees as an important aspect of product governance for firms when considering whether customers are being treated fairly.
The FCA is welcoming comments on the proposal; the consultation period is open for 13 weeks and firms must submit any comments to the FCA by Tuesday 30 April 2019. The full consultation paper can be found here.