Context
The FCA has added one Q&A to its General Insurance Pricing Practices Q&As, first published in August last year.
Key points to note
- The new question covers the circumstance where an insurer has delegated the setting of the risk element of the price to another firm, and asks which firm is responsible for attesting compliance with the rules in ICOBS 6B.
- The FCA explains that, in this case, both firms would need to submit an attestation.
- Insurers have regulatory responsibility for the setting of prices, which forms a key element of the regulated activity of effecting contracts of insurance. Firms cannot contract out of their regulatory obligations and in accordance with Principle 3, must maintain suitable systems and controls to conduct their business responsibly. As set out in SYSC 3.2.4G where firms outsource tasks this includes supervising the discharge of those tasks.
Next actions
None – for information and awareness.