Context
On 28th September the FCA issued the 2021 portfolio letter to Lloyd’s & London Market Insurers, which has now been published onto the FCA’s website. The letter has a good deal in common with the equivalent letter for the Lloyd’s and London Market Intermediaries (and MGAs) portfolio (November 2020) and to some extent the letter to the Personal and Commercial Lines Insurance Intermediaries portfolio (January 2020).
Key points to note
The six areas covered are:
- Value of Products (especially considering the new Product Governance rules in PS21/5 which came into force 1st October) Claims Outcomes (such as BI)
- Operational Resilience
- Uncertainty of cover due to ambiguous contract terms
- Culture (such as Diversity & Inclusion and non-financial misconduct)
- Access to certain business lines (such as Professional Indemnity and Employers Liability)
The letter also mentions Governance and Oversight (especially the responsibility and accountability of SMFs), Vulnerable Customers and Brexit.
Next actions
None – for information only