FCA has updated firms on its plans for the introduction of new rules following its consultation on general insurance pricing practices. It had originally proposed to give firms 4 months from the time it finalised its new rules, but it now plans to extend the implementation period. Almost all the firms that responded to the consultation said they would not be able to meet the planned timetable. It will now give firms until the end of September 2021 for the systems and controls and product governance rules and until the end of the year for the pricing, auto-renewal and reporting requirements.
FCA has not yet finalised its rules, and will publish its policy statement and any rules it makes at the end of May, at which point the implementation period will start. FCA stresses that it expects firms to implement as soon as possible, and that it will consider taking action against firms that do not appear to have taken sufficient steps to implement the changes by the relevant date.
The pricing rules will apply to renewal notices sent after the rules take effect, rather than to policies renewing after the rules take effect. FCA says this means firms will have the full implementation period to make necessary changes to their business models.