| Link(s): | DP24/1: Regulation of commercial and bespoke insurance business DP24/1: Regulation of commercial and bespoke insurance business | FCA |
Context
The FCA is partially reopening Discussion Paper DP24/1. The FCA wants to ensure that customers in the commercial insurance market are protected appropriately, while also not placing unnecessary regulatory costs on firms.
Key points to note and next actions
The FCA is again asking for views from firms on whether the FCA rules appropriately balance customer protection and competitiveness. The DP was initially published in July this year with a relatively short response window, and was covered in our Weekly Update for the week ending 2nd August 2024. The re-opened questions again cover:
- determining which rules apply to commercial insurance, including a comparison of some differing definitions of commercial clients based on balance sheet size / turnover / no. of staff etc., and options to change the FCA’s current ‘SME’ classification;
- how the rules currently apply where more than one firm is responsible for manufacturing insurance products (so where there are co-manufacturers);
- the application of iCOBS to co-manufacturing;
- some of the challenges around how the PROD rules apply to bespoke insurance products, and the ‘bespoke products’ exclusion.
Firms can respond to the reopened questions by 10th January 2025 by emailing commercialinsurancemarket@fca.org.uk.