The latest portfolio supervision letter from FCA is addressed to Lloyd’s and London market insurers and others. The letter follows on from the November 2020 version and, generally, commends the market for its operational resilience following Brexit and the market initiatives currently underway, such as those to improve policy wording clarity. It is not so pleased though with the progress firms have made on culture and diversity.
Particular risks of harm come from poorly valued products, poor claims outcomes and unclear policy wordings. And, on a wider operational resilience front, FCA is concerned at firms’ ability to provide proper service in the event of major operational problems. It is also concerned that customers have difficulty in securing cover on some business lines. The letter explains FCA’s concerns and what it expects firms to do to address them.