At the end of last year, following concerns that consumers do not adequately consider their options at policy renewal, the FCA published Consultation Paper CP15/41 (Increasing transparency and engagement at renewal in general insurance markets).
This is a detailed consultation paper, likely to impact the majority of firms, with proposals ranging from additional mandatory disclosures to guidance on record keeping requirements. The CP sets out proposed new rules and guidance relating to the renewal process for all general insurance products purchased by consumers (retail customers). The proposed requirements will apply to the firm (insurer or intermediary) which provides the renewal communications to the customer.
The FCA is aiming to publish a summary of feedback and final rules and guidance in a Policy Statement in mid-2016 and is proposing that any rule changes will be effective from 1 January 2017.
If you would like some advice about this particular issue or you feel your firm would benefit from some practical compliance support please call or email us on 0800 085 6662 and firstname.lastname@example.org.