Regulatory Alerts2020-11-23
Guidance Note for Licensed Insurers on Unit Linked Pricing
The Guernsey Financial Services Commission mandates strict pricing controls and equitable valuation standards for licensed insurers managing Life Assurance Unit Linked Funds. Insurers must implement robust reconciliation procedures, ensure actuarial oversight of discretionary pricing elements, and maintain annual reviews of delegated or third-party pricing systems. The guidance establishes a 0.5% de minimis threshold, requiring mandatory reporting and policyholder compensation for pricing errors exceeding this limit while exempting smaller discrepancies from restitution.
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