Insurance conduct of business—cancellation rights and claims handling
Insurance conduct of business—cancellation rights and claims handling

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Insurance conduct of business—cancellation rights and claims handling
  • Implementation of the Insurance: Conduct of Business Sourcebook (ICOBS)
  • ICOBS cancellation rights
  • ICOBS claims handling rules

Implementation of the Insurance: Conduct of Business Sourcebook (ICOBS)

On 6 January 2008, the Financial Conduct Authority's (FCA) predecessor, the Financial Services Authority (FSA) brought into force the Insurance: Conduct of Business Sourcebook (ICOBS), which replaced the existing Insurance: Conduct of Business Sourcebook (ICOB). The principal change introduced by ICOBS was to move away from a prescriptive rule-based way of supervising firms to more principles-based or outcome-focused methodology. This meant that pre-existing rules in ICOB were simplified where the FSA felt that specific customer protection was not required.

Although the rules in ICOBS are of a higher level that those previously contained in ICOB (therefore resulting in more flexibility in the way that insurance firms can satisfy their requirements), the FSA made it clear in a press release on 18 December 2007 that it would require the same standards of conduct as were more expressly required under ICOB.

ICOBS has been subject to a number of amendments, none more so than as a result of the implementation of the Insurance Distribution Directive (Directive (EU) 2016/97) (IDD), which was transposed into UK law on 1 October 2018.

For more information on the background to the implementation of ICOBS and the types of insurance to which it relates, see the Insurance Overview Document and Practice Note: Conduct regulation for insurers—COBS and ICOBS.

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