Conduct of business

Copyright © 2025 LexisNexis

Insurance—conduct of business

On 6 January 2008, the FCA’s predecessor, the Financial Services Authority (FSA), brought into force the Insurance: Conduct of Business Sourcebook (ICOBS), replacing the Insurance: Conduct of Business Sourcebook (ICOB). The principal change introduced by ICOBS was to move away from prescriptive rule-based supervision of firms towards a principles-based or outcome-focused methodology.

Treating customers fairly is a fundamental principle underpinning the FCA regulatory regime. It is embodied in Principle 6 of the FCA’s Principles for Business, which states that ‘a firm must pay due regard to the interests of its customers

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Insurance & Reinsurance News

IAIS publishes application paper on supervision of AI in insurance

The International Association of Insurance Supervisors (IAIS) has published the final version of its Application Paper on the supervision of artificial intelligence (AI), following a public consultation held earlier in 2025. The paper provides guidance on how supervisors and insurers can apply existing insurance core principles (ICPs) to the use of AI systems, reinforcing that expectations around governance, conduct, and risk management remain central as AI technologies are adopted in the insurance sector. It covers five key areas: risk-based supervision and proportionality, governance and accountability, robustness, safety and security, transparency and explainability, and fairness, ethics and redress. The IAIS notes that these principles are intended to support supervisors in assessing how insurers implement AI in a manner consistent with sound prudential and conduct practices. A public webinar will be held on 17 July 2025 to present the final paper and respond to stakeholder questions and will also introduce the IAIS’s new consultation on its draft Application Paper on operational resilience objectives and toolkit.

IAIS publishes high-level principles for ICS implementation

The International Association of Insurance Supervisors (IAIS) Executive Committee has published high-level principles (HLPs) for developing the implementation assessment methodology for the Insurance Capital Standard (ICS). Adopted in December 2024, the ICS is a globally comparable, risk-based measure of capital adequacy for internationally active insurance groups and represents a key element of the IAIS Common Framework for the Supervision of IAIGs. The approved principles mark a crucial step in transitioning the ICS from its adoption phase to effective implementation. They will guide the development of jurisdictional assessments scheduled to commence in 2027, as well as the creation of a self-assessment questionnaire for jurisdictions to measure their progress in implementing the ICS in 2026.

IAIS consults on draft Application Paper for insurance sector operational resilience

The International Association of Insurance Supervisors (IAIS) has published a draft Application Paper on operational resilience objectives and toolkit. The paper aims to support supervisors and insurers in assessing and addressing operational resilience in line with the Insurance Core Principles (ICPs), in response to increasing complexity, interconnectivity, and reliance on technology and third-party service providers across the insurance sector. Responses are sought by 29 September 2025 and a public background webinar will be held on 17 July 2025 to present the draft paper and address questions.

ESAs jointly consult on draft guidelines for ESG stress testing in banking and insurance

The three European Supervisory Authorities (the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority—ESAs) have published a joint consultation paper on 27 June 2025 containing draft guidelines for integrating environmental, social and governance (ESG) risks into supervisory stress tests for banks and insurers. Developed pursuant to Article 100(4) of the Capital Requirements Directive (Directive 2013/36/EU) and Article 304c(3) of the Solvency II Directive (Directive 2009/138/EC), the guidelines aim to ensure consistency, long-term considerations and common standards in ESG stress testing methodologies across the EU financial sector. They outline expectations for competent authorities regarding the design, governance and operational features of such stress tests, including the need for relevant expertise, access to high-quality ESG data and appropriate timelines for scenario analysis. Responses are sought by 19 September 2025, with a public hearing scheduled online for 26 August 2025.

View Insurance & Reinsurance by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

Contributory negligence in personal injury claims

Contributory negligence in personal injury claimsContributory negligence is a partial defence which can lead to a discount in damages.Other defences may also be relevant. See Practice Notes: Did the claimant consent to the risk of injury? and Was the claimant involved in an illegal activity?If a
Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companies

Priority between loss reliefs in loss making companiesWhy does it matter?A company that is a member of a group and has incurred any of the types of losses available for surrender by way of group relief may, without any further rules, have more than one way in which to use the loss. There are a

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

Late payment penalties—inheritance tax

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

Contributory negligence in personal injury claims

Contributory negligence in personal injury claims

Contributory negligence in personal injury claimsContributory negligence is a partial defence which can lead to a discount in damages.Other defences may also be relevant. See Practice Notes: Did the claimant consent to the risk of injury? and Was the claimant involved in an illegal activity?If a