Although the FCA has not yet reached a final decision on the details of any rules that might result from its consultation on general insurance pricing practices (CP20/19) an announcement on implementation periods has been made to help firms plan their change programmes effectively.
The FCA intends to publish the policy statement and any new rules at the end of May. The implementation period will start from this point with implementation periods until:
– the end of September 2021 for the systems and controls and product governance rules
– the end of 2021 for the pricing and auto-renewal remedies and the reporting requirements
The FCA has also said that any changes to the pricing rules would apply to renewal notices sent after the rules take effect rather than to policies renewing after the rules take effect.
A number of respondents to the CP had commented that the proposed 4-month implementation period was unworkable because the package of proposed remedies would require significant operational and business-wide changes.