Regulatory Alerts2024-11-12
Guidance on suitability of an insurance contract under the Insurance Intermediary (General Business)(Conduct of Business) Code 2020
The Isle of Man Financial Services Authority issues this guidance to clarify expectations for insurance intermediaries regarding the suitability of contracts under the Conduct of Business Code 2020. Intermediaries must actively identify client demands and needs, match them to appropriate products, and ensure customers are eligible to claim benefits, with processes tailored to the client's sophistication and the complexity of the business. The document outlines specific best practices for commercial and personal lines, emphasizing that while documentation is not strictly mandated, intermediaries must be prepared to demonstrate compliance and handle complaints effectively.
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