FCA publishes its portfolio strategy letter for personal and commercial lines insurers

On 8 January the FCA published its portfolio strategy for the PL&CL sector and confirmed its view of the key drivers of harm

10 January 2020

On 8 January the FCA published its portfolio strategy for the PL&CL sector and confirmed the following as its view of the key drivers of harm:

  • poor oversight of, and poor remuneration practice in, distribution chains
  • risk of consumers being provided with unsuitable or poor value products
  • poor pricing practices
  • ineffective management of some regulatory change and
  • poor operational controls

PL&CL firms can expect there to be greater regulatory focus on these areas during 2020.

Overall, the FCA’s view of the GI is that there are significant risks of harm that both the market and individual firms need to address. In doing so, PL&CL firms need to deliver a step-change in their culture, including prioritising their focus on conduct and consumer outcomes.

This article was written by Anna Davis.

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