Insurance trade associations develop fair value assessment template
We have teamed up with other trade associations in the general insurance sector to develop a template product assessment form and guidance that may be used by all market participants to meet the requirements under the Financial Conduct Authority’s new product governance rules. These were introduced as part of the FCA’s package of pricing practices remedies.
The Product Value – Information Exchange Template (which carries the reference LMA9197 is designed to assist product manufacturers and distributors in meeting the requirements of the FCA PROD rules (PROD 4.2.29 R and PROD 4.2.14 R) relating to information exchange.
These rules require product manufacturers and distributors to consider the fair value that their products and services represent to the end customer. It is hoped that use of the standardised template will make the data collection process easier for insurers, MGAs and brokers alike.
BIBA, the London and International Insurance Brokers’ Association (LIIBA), the Lloyd’s Market Association (LMA), the International Underwriting Association (IUA), the Managing General Agents’ Association (MGAA) and the Association of British Insurers (ABI) were all involved in the project to produce the template. Representatives from insurer and broking communities also played an important part in helping to shape the template.
Each association is making a copy of the template available for download on their respective websites. BIBA members can download the assessment template here and guidance here on how to complete the form.
BIBA members’ compliance and regulation queries should be directed to: [email protected] quoting their membership number.
Read the FCA feeback and final rules paper here.