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UK: FCA Instigates four new thematic reviews affecting the insurance sector

In its annual Business Plan published earlier this month the FCA announced four new Thematic Reviews affecting the insurance sector.

Thematic Review – Commercial claims

Building on the FCA’s recent work on retail claims, this review will consider whether commercial customers’ claims expectations are met.  The review will look at instances where poor behaviour could have a wider impact on trust in the market, as well as leading to poor customer outcomes.

The review is expected to start in Q3 of this year, with a proposed end date of Q1 2015.

Thematic Review – Cover holders

This review will examine cover holder arrangements for firms operating in wholesale markets and will look at the impact on retail and small commercial customers.

In its business plan the FCA said:

We propose to look into the key risks in complex distribution chains and the mixed responsibilities in them, including the cultural risks relating to product design, sales and post-sales handling.  We will also aim to improve the way intermediaries identify and manage conflicts of interest“.

The review is expected to start in Q2 of this year and finish in Q4 2014.

Thematic Review – Premium finance

This review will examine insurers’ and intermediaries’ sales practices and disclosures when selling premium finance to consumers alongside general insurance products.

The review is proposed to start and end in Q3 this year.

Thematic Review – Protection of client money by small firms

The FCA is intending to look at the extent to which firms are currently holding client money without the appropriate permissions and protections.

The review is proposed to start in Q3 2014 and end in Q1 2015.