The FCA has recently sent a ‘Dear CEO’ letter to insurance intermediary firms, setting out the key risks they might pose to their consumers or markets. Firms are expected to assess these risks at senior level and consider whether they have suitable strategies in place.
The risks identified in the letter cover familiar regulatory themes and fall under these key headings:
As well as the ramifications of the pandemic, the FCA is particularly concerned about insurance intermediaries selling products (including through Appointed Representatives and distribution chains) in ways which may lead to customer harm. For example, not providing customers with the required information about the product (or credit agreement) and the firm’s services, not ensuring the customer’s demands and needs are met and remunerating staff inappropriately.