Risk & Regulation Rundown General insurance and protection - addressing the value challenge head on - S6E7
Dec 19, 2024
Stephen Arnold, a PwC Partner specializing in risk and regulation in insurance, and Samantha Jones, a PwC Director with insights on consumer duty, dive deep into the evolving landscape of general insurance. They discuss the FCA's scrutiny on consumer duty, fair value, and the implications for pricing in the insurance market. Insights on life insurance bereavement claims reveal industry complexities, and they explore how regulatory challenges are pushing firms to innovate and maintain clear communication for better customer outcomes.
AI Snips
Chapters
Transcript
Episode notes
FCA's Focus on 'Good' Customer Outcomes
- The FCA focuses on ensuring good customer outcomes in moments of need, like accidents or crises.
- This emphasis on "good" outcomes is relatively new in the insurance industry and presents challenges in definition and evidence.
FCA's Intervention in Gap Insurance
- The FCA shut down the gap insurance market due to poor value for customers.
- This product had high distribution costs and low claims frequency, not meeting the FCA's value expectations.
FCA's Focus on Value in Consumer Duty
- The FCA's supervisory work on consumer duty strongly focuses on value, particularly in general insurance and protection.
- This focus may extend to other sectors as the FCA emphasizes good outcomes.