The Consumer Duty brings forth an extensive set of requirements for insurance businesses, extending its scope to cover retail products and services, even beyond firms with direct customer relationships. Central to the Duty is the emphasis on acting in the best interests of retail customers by considering their unique needs, characteristics, and objectives. The Duty introduces new rules and guidance aimed at ensuring that insurance products and services are designed to meet customer needs. Effective communication that supports consumer understanding and comprehensive support throughout the entire lifecycle of a product or service are also crucial aspects.
Given the recent regulatory activity by the FCA in the GI sector with a focus on claims handling and claims settlement, we set-out below a summary update on the work of the FCA have been doing regarding small and medium-sized insurers' use of third party loss adjustors.
The FCA has in a recent letter to insurers described the forthcoming Duty as "..a significant shift in [our] expectations of firms. It introduces a more outcomes-focused approach to consumer protection and sets higher expectations for the standard of care that firms give customers."
With the introduction of the FCA Consumer Duty, the requirements in respect of consumer support are becoming more and more stringent and this webinar examines those requirements in detail; looking at examples of good and poor practice in respect of handling vulnerability and customer communications, as required under the Consumer Duty.