Insurance conduct of business—general matters and information requirements
Insurance conduct of business—general matters and information requirements

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

  • Insurance conduct of business—general matters and information requirements
  • Implementation of the Insurance: Conduct of Business Sourcebook (ICOBS)
  • General matters
  • Information Requirements

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.

The rules in ICOBS generally apply to a firm when it carries out one of the following activities in relation to a non-investment insurance contract (the rules governing insurance-based investment products are contained in the FCA’s Conduct