PRESS RELEASE
08 November 2021

LMA issues updated guidance on updated FCA Pricing Practices and Product Reviews

The LMA has today issued guidance on the new FCA Pricing Practices rules and associated Product Reviews.

The new rules require carriers to provide information on most products, including features, target market and those whom the product is not likely to be suitable for. There is also a reciprocal requirement for intermediaries to report details of remuneration (including fees and commission) throughout the distribution chain.  

The updated guidance includes a template, with notes and examples to facilitate the exchange of required information and is the result of a cross-market collaboration led by the LMA.

Steve Morrell, Head of Regulatory Affairs at the LMA, said: “The new rules, although seemingly relatively simple, had the potential to snowball into an unmanageable administrative burden for both carriers and intermediaries. It made sense therefore to adopt a co-ordinated approach and the LMA has worked closely with the ABI, BIBA, IUA, LIIBA and MGAA to agree a standard template, which should minimise the burden on our members.”

Development of the approach also included representatives from managing agents Ark, Beazley and Brit, and brokers Aon, Marsh and Willis Towers Watson. 

Joanne Hart, Head of Conduct Risk and Complaints at Brit said: “The new rules had the potential to create significant work. However, we welcome the benefits they should bring. Intermediaries should be able to ensure a proper understanding of the value of the products they distribute and, in turn, carriers should gain a better understanding of the value of the distribution chain. Most importantly, it should go a long way to ensuring that end customers are receiving valuable products at fair prices.”

The LMA’s Pricing Practices and Product Reviews Guidance is published on its website. The Lloyd’s and London Market Product Information Exchange Template and associated guidance has also been published on the Lloyd’s Wordings Repository with LMA 9197 and LMA 9198 reference numbers.

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Notes to Editors

The updated Pricing Practices and Product Reviews Guidance is available to download from the LMA website here: www.lmalloyds.com/PPPR

Media relations contacts

James Milne, Communications Director, LMA
Tel: 020 3307 3922; Email: james.milne@lmalloyds.com

Richard Adams, Haggie Partners
Tel: 020 7562 4444; Email: richard.adams@haggie.co.uk

About the Lloyd’s Market Association (LMA)

The Lloyd's Market Association (LMA) exists at the very heart of Lloyd's, a world-leading global marketplace for complex risk where solutions to challenges are delivered every day. All 51 Lloyd's managing agencies, who write approximately £36 billion of premium per annum, and all Lloyd's members agents, are members of the LMA.

We represent our members' interests to organisations including governments, regulators, and the market's central supporting body, the Corporation of Lloyd's. We provide professional and technical expertise in areas ranging from model policy wordings to the implementation of innovative technologies. We connect with our members to identify and resolve issues facing the market, and work in partnership with Lloyd's and the other market associations to influence initiatives and outcomes. We operate the market's most comprehensive technical education service, the LMA Academy. For more information visit: www.lmalloyds.com