Those Firms that have General Insurance Clients that have annually renewable Insurance policies will need to make further changes to their documentation from April 2017.
The FCA have published new requirements in PS16-21 outlining changes expected. In particular, those clients that are at the forth renewal of a policy will need to be informed to consider "shopping around". Examples of the wordings that can be used include :
‘You have been with us for over five years. You may be able to save money if you shop
around.’
‘Have you checked that your insurance cover still meets your needs? Have
you considered shopping round to find the best deal for the cover you
want?’
‘You have been with us for a number of years. You may be able to get the
insurance cover you want at a better price if you shop around.’
Interestingly, there are a number of exemptions that apply - such as monthly renewable policies and long term policies. The requirement only applies to Retail Insurance and not Commercial Lines.
If you need help with your disclosure requirements do get in touch.
Compliant Solutions Limited - experts in helping Financial Services Businesses deal with the business challenges of Financial Conduct Authority Compliance - for help contact ian@compliantsolutions.co.uk
