Insurance - Q1 2022

General Insurance Pricing Practices (GIPP) rules

The FCA recently conducted a survey on the implementation of the new rules. The first attestation is due on 31 March and the regulator has sent email reminders to some firms.

The first REP019 report on product value measures was due on 28 February for some firms – it is only relevant to intermediaries who distribute a product line that is underwritten by a non-admitted insurer with 3,000 or more policies in force and a £400,000 written premium for that product type category within the reporting period.

Insurance costs on multi-occupancy buildings

In January, the FCA published a Dear CEO letter on insurance costs for multi-occupancy buildings. The regulator is concerned about the rising costs for apartment blocks and other similar multi-occupancy buildings being passed on to leaseholders, which is contributing to financial difficulties. Insurance firms should review their policies to ensure that they are providing fair value and are not using commission calculations to influence distributors to act against the best interests of the customer. The FCA is collecting data and engaging in discussion regarding the approach to pricing.

Part VII insurance business transfers

The FCA published an update to the guidance on insurance business transfers in February. This guidance is designed to help with the process and considerations of a Part VII transfer.

Claims management fees cap

From March 2022, the FCA put in place restrictions that will prevent Claims Management Companies (CMCs) from charging excessive fees. The rules mean CMCs must disclose key information to consumers before entering a contract, such as more detail about how fees will be calculated and making consumers aware of the free routes to redress available.