FCA tells insurers: “Providing Fair Value should be central to a firm’s culture and purpose”

Earlier this month, Kate Collyer, Chief Economist and Interim Director of Competition at the Financial Conduct Authory appeared at a webinar hosted by Consumer Intelligence.

Ostensibly covering the FCA’s proposed pricing remedies – yet to be finalised – the title of the webinar was: Fair Value: Navigating the Future with the FCA.

It was interesting – and significant – that the word “pricing” did not appear in the name of the webinar. Over 700 people attended the webinar, and here’s what I took from it:

  • The FCA’s “pricing” intervention is really about #FairValue.
  • The FCA will judge Fair Value through the eyes of the consumer.
  • The FCA’s Fair Value recommendations will be the start of a continuous process.
  • Fair Value is not about compliance; it’s about embedding Fair Value into all products and services.
  • It needs to be led by senior insurance execs as a strategic priority.
  • There are long-term commercial benefits to embracing Fair Value.
  • This is not new or unexpected. Retail and investment banking have been through this process, so insurers can look to those for examples of how to respond.
  • The FCA will monitor insurers’ progress: “We expect them to deliver Fair Value,” Kate said.

What do you think? Are you ready to move to a value-based model?

Do you think the insurance industry at large is ready for the change?

Many in the insurance industry seem unclear on the full scope of the FCA’s proposed pricing remedies, as well as the FCA’s intentions.  That’s why I’ve put together a brief survey to take the market’s temperature on this. To see what you and other leading lights in the industry are thinking.  Take part, and you’ll get priority access to our report on the results as soon as it’s ready.

Take the Survey here

 

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