We set out our final rules to address harm in home and motor insurance markets.
Why we are changing our rules
We are introducing rules to improve the way general insurance markets function. This follows our consultation (CP20/19) and the final report of our Market Study (MS18/1.3), which we published in September 2020.
Our rules ensure that renewing home and motor insurance consumers are quoted prices that are no more than they would be quoted as a new customer through the same channel. We are also making it simpler for customers to stop automatic renewals if they wish to do so. We are also introducing new product governance rules to ensure that firms deliver fair value on all their insurance products.
These rules supersede the General insurance distribution chain: Finalised guidance for insurance product manufacturers and distributors (FG19/05), which will be withdrawn when they come into effect.
Some of these rules also apply to insurers and intermediaries of other general insurance and protection products.
We have also published a research paper alongside this policy statement. This contains the results of an experiment we conducted looking at consumer perceptions of and response to discounts and incentives.
Who this applies to
This policy statement will be of interest mainly to:
- general insurers and intermediaries
- life assurers and intermediaries selling pure protection business
- trade bodies representing these firms
- consumers and consumer organisations
The rules we are introducing come into force on:
- 1 October 2021 for the systems and controls, product governance, premium finance provisions and related glossary changes.
- 1 January 2022 for the pricing and auto-renewal remedies, reporting requirements, and related glossary and administrative changes. Firms have until 17 January 2022 to implement the pricing and auto renewal disclosure remedies fully, but after 1 January 2022, they must pay redress or make repayments to people if the delay to implementing negatively impacts them.