Freeths

<section><section><section><p>This Practice Note considers the implications of the Financial Conduct Authority’s (FCA) Consumer Duty for insurance intermediaries, including measuring fair value of insurance products, the FCA’s expectations for implementation and consideration of a number of specific issues for insurance intermediaries related to scheme policies, placing and producing brokers, claims and renewal processes, broker commissions and potential conflict with insurers. It also highlights key regulatory developments (including supervisory reviews) relevant to insurance intermediaries’ implementation of the Consumer Duty.</p><p>For information on the main elements of the FCA’s Consumer Duty, see Practice Note: The FCA Consumer Duty—essentials. For guidance on the implications of the Consumer Duty for insurers, see Practice Note: The FCA Consumer Duty—implications for insurers.</p><p>For key developments relating to the FCA’s Consumer Duty, including implementation deadlines, see: The FCA Consumer Duty—timeline.</p><section><h3>FCA’s reviews into value measures</h3><p>Firms must deliver and assess four outcomes under the Consumer Duty, which includes evaluating price and value of products. The FCA has stated that firms must undertake fair value assessments as a way of demonstrating that the price a consumer pays</p></section></section></section></section>

<section><section><section><p>This Practice Note considers the implications of the Financial Conduct Authority’s (FCA) Consumer Duty for insurers, including consideration of a number of specific issues related to the claims handling process, the calculation and setting of premiums, the suitability of policy wordings and third party involvement. It also highlights key regulatory developments (including supervisory reviews) relevant to insurers’ implementation of the Consumer Duty.</p><p>For information on the main elements of the FCA’s Consumer Duty, see Practice Note: The FCA Consumer Duty—essentials.</p><p>For guidance on the implications of the Consumer Duty for insurance intermediaries, see Practice Note: The FCA Consumer Duty—implications for insurance intermediaries.</p><p>For key developments relating to the FCA’s Consumer Duty, see: The FCA Consumer Duty—timeline.</p><section><h3>Claims</h3><p>For insurers, the process for handling claims is likely to be one of the areas which the FCA focuses on the most when assessing insurers’ compliance with the Consumer Duty. This is because, in practice, the event of a claim is where the overall value and benefit of a policy becomes known—customers purchase policies to provide them cover in</p></section></section></section></section>