Cavere welcomes the FCA’s new rules related to General Insurance Pricing Practices. We believe that these changes will be positive for consumers and allow our agents to compete on a level playing field with brokers large and small.
However the new rules do mean we all need to make some changes in the way we work.
If you need to read the full text of the final guidance from the FCA you can read it HERE.
We encourage all brokers to review the new rules in detail to ensure they are compliant by the required deadlines.
In summary the package of changes are as follows:
- ensure that renewal quotes for existing home insurance consumers cannot be higher than quotes for a new business customer.
- enhance product governance, to be sure we are delivering fair value to customers, which now includes premium finance.
- enhance FCA reporting requirements to include pricing and value measures, to ensure more effective market supervision
- make it easier for consumers to cancel the auto renewal of their policies
What do the changes mean for our agents and brokers?
The changes are designed to make insurance pricing fairer for customers. As an authorised intermediary this means that you need to review the value and pricing you offer as part of your overall proposition.
- Reviewing the value of every product you sell, be that Cavere policies or someone else’s.
- Understanding how the new pricing rules may apply to your business.
- Making sure there’s no duplication of cover, and target markets are consistent.
- Ensuring any fees or charges you’re applying are representative – because your business model cannot have a negative impact on the value customers get from a policy.
Below are some FAQs.