LMA Consumer Wordings Guidance Updated

The Lloyd's Market Association (LMA) has published an update to the UK Consumer Wordings Guidance, jointly with Browne Jacobson LLP. The Guidance (v7) is intended to assist managing agents in producing ‘consumer’ product wordings and related documentation, reflecting current UK regulatory requirements and promoting best practice.

The updated guidance reflects recent regulatory changes, including the removal of Lloyd's minimum standards and the introduction of the FCA Consumer Duty. This update ensures that the guidance remains aligned with the latest legislative requirements and industry standards.

Since 2015, the LMA has provided essential guidance to its members on effectively communicating insurance concepts to consumers. The updated guidance includes new sections on testing communications and digital policy layout, along with comprehensive advice on various aspects of consumer communications, prompted by the introduction of the FCA Consumer Duty.

The 2024 update of the UK Consumer Wordings Guidance aligns with broader initiatives aimed at promoting clearer and more customer-centric insurance documentation. The LMA has several related projects in the pipeline for 2024, including an update to the UK Consumer Personal Accident Policy wording ("K form") and production of a new property & business interruption wording for UK SME customers.

Please note that the updated guidance is only available on the LMA website. It is not available in hard copy and is not available to non-members. The guidance will be periodically updated as and when required. The guidance is aimed at communicating with UK consumers, based on UK legal and regulatory requirements. Whilst many of the principles are generally applicable to consumers in other jurisdictions, members should ensure that all communications meet applicable local requirements.

David Powell
Head of Technical Underwriting
david.powell@lmalloyds.com

Arabella Ramage
Legal Director
arabella.ramage@lmalloyds.com