FCA Extend Implementation Period for Proposed General Insurance Pricing Practices Rules

The FCA’s consultation into general insurance pricing practices CP20/19, which closed on 25 January, has received over one hundred responses.

Many of the respondents felt that the proposed implementation period for any new rules, initially set at four months, would prove impossible to meet.

The feedback suggested that the proposed rules would require firms to make significant operational and business-wide changes, including developing and testing new pricing models, which would impose additional pressures on firms at a time when they are dealing with the impact of the Covid-19 pandemic.

The FCA has yet to reach a final decision on any rules. It is anticipated that a policy statement will be issued at the end of May 2021. If any rules are made, the FCA will issue the following implementation timelines:

  • End of September 2021 for the systems and controls (SYSC) rules and product governance rules.
  • The end of 2021 for pricing and auto-renewal remedies and reporting requirements.

The FCA will expect firms to implement the rules on or before the proposed deadlines.

RWA will review any such rules when they are published and will issue advice to insurance brokers as appropriate.

About the author

Nathan joined RWA in 2016 on successfully completing his PhD. He previously worked in the private, public and charitable sectors. Nathan leads the content and professional standards team at RWA and is responsible for managing and curating technical content on the Aviva Development Zone and the award-winning My Development Zone e-learning platforms.

Since joining RWA, Nathan has written hundreds of business skills e-learning modules and assessments on a variety of subjects, including leadership and management, communication skills, human resources, employability, regeneration, citizenship and equalities.

Get RWA Insight In Your Inbox

Regular business news and commentary delivered direct to your inbox each week. Sign up here