Insurers just days away from step change in demonstrating value

New rules on product governance will create a more customer centric insurance sector

New rules on product governance will create a more customer centric insurance sector

Ahead of the FCA’s new rules on product governance* coming into force on Friday, 1 October, James Hillon, Director, General Insurance, KPMG UK, comments:

“Insurance firms are just days away from a step-change in how they demonstrate that their products offer customers good value. This first FCA deadline marks a significant milestone in the leap towards a more customer-centric industry.

“The fact the FCA felt it necessary to issue a warning signal to firms about their level of readiness indicates that some are in the middle of a sprint finish right now, however, the majority of firms we have come across are making sure and steady progress. But October 1st is the starting point and not the finish line. The bumps will come later as we potentially see firms interpret ‘good value’ in different ways.

“Until the new rules are well embedded there’s a risk that we will have an uneven playing field as some firms are more stringent than others in their definition of good value. This could become even more pronounced when the new rules, in relation to car and home insurance pricing, hit at the end of the year. This is something the FCA will be watching closely.”

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*This is part of the wider reforms being introduced following the General Insurance Pricing Practices Market Study

 

For further media information contact:

 

KPMG Media Relations:

Tel: +44 (0) 207 694 8773

Christina Bridge (Mon – Wed)

KPMG LLP

Tel: +44 (0)7789 504905

Citypress

KPMGFS@citypress.co.uk

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff.  The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. 

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