Regulatory Alerts2020-09-21
Added · Updated
PS21/11: General insurance pricing practices - amendments
The Financial Conduct Authority amends general insurance pricing rules to clarify that intermediaries offering cash-equivalent incentives must replicate them in the Equivalent New Business Price at renewal, and to define commission-rebated business as gross-rated for reporting purposes while requiring notification if over 25% of home or motor sales involve such rebating. The definition of renewal is narrowed to exclude customers who actively purchase a similar policy through a different channel, while auto-renewal transitional provisions are updated to require retrospective disclosures for all non-compliant communications made during the period. These amendments, which also remove erroneous references to margin recording and standardize product type terminology, come into force on 1 January 2022.