FCA pricing interventions shake up general insurance

The FCA published its Policy Statement General insurance pricing practices remedies (Feedback to CP20/19 and final rules)  on 28 May 2021, introducing a package of remedies to address the issues identified in its General insurance pricing practices market study final report. These remedies include a ban on differential pricing between new and existing customers, making it easier for customers to cancel auto-renewing policies, extending the product governance rules to existing products and restricting firms’ ability to use price optimisation techniques when setting prices. Also included are additional reporting requirements on pricing and annual attestation by senior managers on compliance with the new regime. 

Firms will have until the end of September 2021 to implement systems and controls (SYSC) rules and product governance rules and until the end of 2021 for the pricing, auto-renewal remedies and the reporting requirements.

Download this At a glance to see our summary of the FCA’s new rules and what it means for firms.