Lloyd's Market Association Bulletin

LMA21-040-SM | 08 November 2021

Updated Guidance on product reviews and the exchange of information between carriers and brokers including remuneration

The LMA has worked with LIIBA, BIBA, IUA, MGAA and the ABI to agree a template and associated guidance to meet the FCA’s new requirements regarding information exchange between carriers and intermediaries.

The requirements apply to ALL products, worldwide, except for “large risks” and reinsurance.

The previously issued LMA Guidance has been updated accordingly. The agreed template and associated guidance have been published on the LWR as LMA9197 and LMA9198, respectively.

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 LMA Guidance  has been updated in LMA Bulletin LMA21-034-SM (first issued: 20 September 2021).

Steve Morrell
Head of Regulatory Affairs