| Link(s): | General insurance value measures |
Context
The FCA has published a ‘reminder’ web page in relation to general insurance value measures data reporting. In its General Insurance (GI) add-ons market study (MS14/1) the FCA identified poor product value as an area of harm in general insurance. To help address this the FCA introduced new rules to report and publish data on value measures, as set out in Policy Statement (PS20/9). UKGI covered the issue of value measures data reporting in its Bulletins 309 and 319 on the UKGI online Compliance Manual.
Key points to note
Firms will be required to:
- report GI value measures data including claims frequencies, claims acceptance rates, average claim pay-outs and claims complaints as a % of claims; and
- ensure that products offer fair value to customers in the target market.
The rules came into force on 1st July 2021. A firm’s first report will be for the 6-month period covering 1st July 2021 to 31st December 2021 and will be due by 28th February 2022. Subsequent reporting must be submitted annually thereafter by 28th February for the previous calendar year.
- Firms will need to submit the reports via the FCA’s RegData platform.
- Remember – it is insurers who are required to report this data (including Gibraltarian insurers and insurers in the TPR) and that brokers would only need to report where they are using a non-admitted insurer (e.g., Guernsey) for personal lines products and a sufficient volume.
Data needs to be reported at a product level when both of the two reporting thresholds are met:
- Where total written retail premiums exceed £400,000 in the reporting year; and
- Where there are more than 3,000 policies in force during the reporting year.
The thresholds are by product. Fortunately, the product levels are quite granular. Therefore, some insurers may be under the thresholds.
Next actions
None – for information and awareness