What are the three main elements of the FCA’s Consumer Duty in Renewals?
-Consumer Principle
-Cross-cutting rules
-Four outcomes
What is the Consumer Principle?
A firm must act and deliver good outcomes for retail customers
What does it mean by cross-cutting rules?
Sets out more detailled FCA expectations in how firms act to deliver good outcomes
What are the four outcomes?
They are a set of more detailed rules and guidance in four areas.
What are the four areas for the four outcomes?
-Governance of products and services
-Price and value
-Consumer understanding
-Consumer support
When did the consumer duty come into effect?
31st July 2023 for new products
31 July 2024 for exisiting products
What are the benefits of the consumer duty?
Cash savings
Improved client outcomes
Proactive and simplified comms
What is the futher regulatory rules?
Rules about renewals that concern insurers and intermediaries selling retail general insurances products
What are the three further regulatory rules?
-Disclose last year’s premiums on renewal notices
-Include text to encourage consumers to check other prices
-If a consumer has renewed 4 times in a row provide an extra message of telling them to compare prices
What is required to be in a contract to allow an insurer to cancel?
Cancellation Clause
What is in a Cancellation clause?
Seven day’s notice
Recorded delivery to insured’s last known address
Proportionate return of premium
How many days does the insured have to cancel a policy after inception?
14 days
