Some joined up thinking from BIBA, LIIBA, ABI and others across the insurance industry. Standard forms on fair value reporting to the FCA are definitely a good idea.
Insurance trade associations have worked collaboratively, to develop an assessment template and guidance that may be used by all of the market.
Working together, the trade associations representing the general insurance market have produced a template assessment form that may be used by all market participants to meet the requirements under the Financial Conduct Authority’s new product governance rules. These rules require product manufacturers and distributors to consider the fair value that their products and services represent to the end customer. It is hoped that use of the standardised template will make the data collection process easier for insurers, MGAs and brokers alike.
The British Insurance Brokers’ Association (BIBA), the London and International Insurance Brokers’ Association (LIIBA), the Lloyd’s Market Association (LMA), the International Underwriting Association (IUA), the Managing General Agents’ Association (MGAA) and the Association of British Insurers (ABI) were all involved in the project to produce the template. Representatives from insurer and broking communities also played an important part in helping to shape the template.
David Sparkes, BIBA’s Head of Compliance said: “The template goes a long way towards helping firms meet the FCA’s expectations in relation to considering product value. This has been a great example of the industry trade bodies coming together to support our respective members in a mutually beneficial way. I would personally like to thank my fellow trade associations, as well as the insurers and brokers involved, for the open and collaborative approach that everyone took.”
Each association is making a copy of the template available for download on their respective websites.