The FCA has updated its web page, ‘PS21/11: General insurance pricing practices – amendments’ to provide an update on the Senior Manager Attestation. The attestation will allow firms to provide annual confirmation that they have complied with the requirements in ICOBS 6B, helping the regulator in holding firms and individuals to account for ending price walking for home and motor insurance.
The FCA will be sending out a Qualtrics survey in January, where firms can provide their first annual attestation, to all general insurance and premium finance providers, including:
- Home insurance
- Motor insurance
- Add-ons sold alongside home insurance (excluding premium finance)
- Add-ons sold alongside motor insurance (excluding premium finance)
- Premium finance sold alongside home insurance
- Premium finance sold alongside motor insurance Fees – by charging a fee at renewal for home insurance
- Fees – by charging a fee at renewal for motor insurance
- Incentives – by giving cash or cash-equivalent incentives to new business customers and is involved in the renewal of either home or motor insurance
Firms that are subject to the rules must provide this attestation by 31 March 2022.
Some firms that are not subject to the rules may receive the survey. If a firm is in this group, the FCA requests that a nil return is submitted as confirmation that the firm does not undertake any pricing activity in relation to all products in scope. Further information on how this should be done will be included in the survey.
The FCA is using Qualtrics for the first attestation only. The second and then all subsequent attestation will be done via its RegData system.
There is still time to complete our November Course of the Month on the Aviva Development Zone – ‘General Insurance Pricing Practices – Introduction’. If you are not currently signed up to the system, you can access a free trial here: https://mydevelopment.zone/#getStarted
If you need any advice on this area or any other compliance issues, please contact your RWA Business Manager or email email@example.com.