Lloyd's Market Association Bulletin
LMA21-034-SM | 20 September 2021
LMA Guidance on FCA Pricing Practices Rules (PS21/5)
The FCA has published new rules regarding insurance pricing practices which include significant new requirements to facilitate effective fair value assessments. The new requirements relate to product reviews and the exchange of information between managing agents and intermediaries, including details of intermediaries’ remuneration.
All managing agents should ensure they are familiar with these new requirements. We will continue to update the guidance as the market approach develops.
The FCA has stressed the importance of this initiative to us and reiterated the need for firms to comply in their recent Dear CEO letter.
In response, the LMA has put together the attached guidance [ updated 08 November 2021 ] which summarises the requirements and provides guidance on how members can approach the required product reviews. We are also working with the IUA, LIIBA, BIBA and the MGAA to develop a framework to facilitate the information exchange requirements. When that work completes, the guidance will be updated accordingly.
Also attached is a Fair Value check list which members may find useful.
Head of Regulatory Affairs