FCA publish feedback statement and final guidance on assessing value of insurance products

This article was written by Anna Davies.

 
The finalised guidance includes the following changes from the draft, to clarify that firms:

• should consider the value of products where, due to the impact of coronavirus, there has been a material reduction in risk so that they are providing little or no utility to customers, and not just where claims are no longer possible;
• are not expected (under the new guidance) to assess value on an individual customer level, but should consider the FCA’s guidance on helping customers in financial difficulty as a result of coronavirus;
• can assess the longer-term impacts of coronavirus on their insurance products on an ongoing basis beyond the 6-month period set out for product reviews resulting from the guidance.