| Link(s): | Implementing the Consumer Duty in the General Insurance and Pure Protection sectors (fca.org.uk) Consumer Duty – information for firms | FCA |
Context
As part of its promised sector-specific publication of information and assistance, the FCA (Matt Brewis, Director of Insurance Supervision, Policy & Competition) has written to firms in the general insurance and pure protection sector.
Key points to note
This letter sets out:
- a reminder of the implementation timeline, key elements of the Duty and how it applies to firms in the GI/PP sectors;
- FCA expectations for how firms should embed the Duty in the GI and PP sectors, including relevant examples of good and poor practice;
- feedback from the FCA’s recent review of firms’ implementation plans;
- the FCA’s approach to supervising the Duty in the GI and PP sectors and planned next steps; and specifies that
- the FCA expects the Consumer Duty to be a top priority for the CEO / most senior manager personally.
The letter also covers and clarifies, to a degree:
- the scope of the Duty for firms in the GI and PP sectors;
- an overview of the requirements of the Duty;
- the FCA’s expectations for how firms should embed the Duty in the GI and PP sector;
- the recently published feedback following its review of firms’ implementation plans; and
- its supervisory approach and next steps.
There are two Annexes to the letter. The first carries the title ‘How the Duty applies to GI and PP firms’, and comments specifically on vulnerable customers, the cost of living and the AR regime. The second sets out key things for firms to consider, split up into commentary in relation to each of the four consumer outcomes.
Dear CEO letters relating to the Consumer Duty for all sectors can now be viewed from the Portfolio and sector communications section of the FCA’s Consumer Duty – information for firms webpage
Next actions
None – for information and awareness.