Gary Maude, Director of Advisory Practice at TCC, shares his concerns for the insurance sector:

“In conjunction with the recent regulatory scrutiny of insurance products such as GAP insurance, the regulator’s criticism of motor claims handling, and the ongoing consideration of Discretionary Commission arrangements – the FCA’s latest findings indicate that the insurance sector may be in for a rough ride.”

In its news release, published earlier this month (August 2024), the FCA urges insurers to ensure they can demonstrate fair value and good outcomes for their customers.

Matt Brewis, Director of Insurance at the FCA, said:

“Insurers need to make sure their customers are getting fair value. Progress is being made, but we are still seeing too many examples of insurers and brokers lacking the right information, governance, or oversight to ensure their customers get consistently good outcomes.”

The FCA recently stated that although insurers and brokers have improved governance and oversight of how products are designed, managed, reviewed, and distributed, many still cannot show how they are providing fair value to customers or that they are receiving good outcomes.

TCC is already seeing the impact of the recent FCA review into Product Governance of insurance products. Indeed, our compliance experts are aware of instances in which the FCA have expressed ‘material’ concerns that firms are still struggling to demonstrate an appropriate level of control over what should be a pre-requisite of the Consumer Duty outcomes.

We recommend that firms act now to clarify any risks they may have and take actions to address them.

TCC experts have the expertise and experience to help you review your current operations, outline steps necessary to deliver fair value for your clients – and support you in implementing strategies that ensure good customer outcomes and long-term compliance.