FG19/05: General insurance distribution chain: Finalised guidance for insurance product manufacturers and distributors

This finalised guidance sets out our expectations of insurance product manufacturers and distributors. 

Show FG19/5 (PDF)

Show FG19/5: Summary of feedback (PDF)

During 2017 and 2018, we conducted diagnostic work on general insurance distribution chains. This found a number of harms to customers from failures in product design, oversight and distribution. We published the findings of this work in TR19/2.

Update – October 2021

On 28 May 2021, we published our Policy Statement PS 21/5 General insurance pricing practices market study - Feedback to CP20/19 and final rules. This contains new rules on systems and controls, product governance, premium finance provisions and related glossary changes. From 1 October 2021 the product governance rules confirmed in PS21/5 replaced the guidance we previously set out in FG19/5, and so this guidance has been retired for future business from 1 October. This guidance may continue to be relevant in relation to any conduct prior to this time.  

Finalised Guidance

To provide clarity to firms about our expectations, in particular on the design and distribution of insurance products and the requirement to act in accordance with the customer’s best interests, we consulted on new non-Handbook guidance in GC19/2 in April 2019. We have made some revisions to the guidance following the feedback we received.

Who this applies to

This guidance is relevant to all firms conducting general insurance and protection business - both insurers and intermediaries. This includes firms such:

  • retail banks
  • mortgage intermediaries
  • independent financial advisors and
  • others who distribute general insurance and protection products alongside their primary business

Page updates

12/10/2021: Information added October 2021 update