Following the FCA’s decision to require insurance firms to offer renewing home and motor policyholders a price no higher than equivalent new customers, the regulator is engaging with affected firms to work through the implications of the radical intervention it’s about to undertake.
With a consultation on its final report on General Insurance Pricing Practices Market Study MS18/1.3 wrapping up on 25 January 2021, the FCA has just published three sets of slides from the General Insurance Pricing Practices Market Study Forums held during November.
Three sessions covered, respectively, the FCA’s pricing remedy proposal, its product governance proposals, and its proposals on reporting and auto-renewals. Each aimed to address questions on the intent behind the regulator’s proposals and how they’re expected to work in practice.
It’s well worth looking over these slides, which are set out in a summarised Q&A format, arranged by topic. They shed some valuable light on the regulator’s intentions and some of the complexities and obstacles likely to be thrown up by their collision with day-to-day realities.
If you’re active in the motor or household insurance space, it’s more than likely some of the issues raised will resonate with you. In which case, you have until 25 January to have your say by responding to the pricing consultation paper.
If you would like more information about how the FCA’s pricing proposals could affect your business or – for example – help formulating your response to the consultation, please don’t hesitate to get in touch. You can contact a member of our expert team on 01925 765777, or email us at firstname.lastname@example.org.