Tuesday 25th June 2019
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Comsure operates in:the UK, Jersey, Guernsey

FCA warns GIMB firms (April 2019) in general insurance distribution chains to put customers at the heart of their business models

The FCA has published a number of materials relating to its work on the general insurance (GI) sector:


  • A thematic review report (TR19/2), which sets out the key findings from the FCA’s thematic work on the GI distribution chain, its expectations and next steps.



  • A guidance consultation (GC19/2) on proposed non-Handbook guidance on expectations of firms involved in GI distribution chains.



  • A Dear CEO letter, in which the FCA shares its findings and expectations with GI firms and calls on them to act immediately to identify and mitigate any shortcomings.


The FCA has found that some GI firms have not responded appropriately to previous FCA work in this area. This means that these firms are insufficiently focused on customer outcomes, including the value of the products and services their customers receive. All GI firms must put customers at the heart of their business models and have appropriate regard for the value customers receive from the GI products they manufacture and distribute. This expectation applies to firms in all parts of the GI distribution chain and is underpinned by the FCA rules and Principles for Businesses.


The FCA advises all GI firms to consider TR19/2, GC19/2 and the Dear CEO letter, and its expectations carefully to identify how the findings should apply to them. Firms are expected to take appropriate action immediately to mitigate any issues identified. The FCA has warned that it will not hesitate to take action if it finds actual or potential customer harm.


GI products are key to giving UK consumers and businesses the security and stability to go about their daily activities with confidence. As a consequence, the FCA considers it essential that customers can access high quality, good value insurance products that meet their needs and perform in line with their reasonable expectations

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