FCA - How Consumer Duty can impact firms

FCA - How Consumer Duty can impact firms
In February 2024 the FCA reached agreement with insurance providers who offered Guaranteed Asset Protection (GAP), suspending sales of these products after it was identified that only c. 6% of premiums were paid out in claims and in some instances up to c. 70% of the value of premiums were being paid to commission arrangements.

Agreement has been reached with four Firms now to recommence offering GAP products, these are as follows.

Fortegra Europe Insurance Company Ltd
Motors Insurance Company Ltd
Amtrust Europe Ltd
Financial & Legal Insurance Company Limited

This is a good example of how the Consumer Duty can impact firms as this was all linked to these products not offering Fair Value to consumers.

If you or your Firm need support with Consumer Duty please drop us a line: info@productpartnerships.com