The FCA has published its most recent portfolio strategy letters for:
- Personal and Commercial Lines Insurance Intermediaries; and
- Lloyd’s and London Market Insurance Intermediaries (and Managing General Agents).
Some common themes in the letters include:
- customers are still being treated unfairly with risks of potential harm to customers who are buying unsuitable or poor value products with failings being attributed to poor governance with no focus on consumer needs;
- customers are continuing to buy products that do not always offer fair value and provide insufficient cover at the point of claim;
- senior managers and boards are not delivering regulatory changes effectively relating to pricing and the consumer duty to ensure customers are receiving value; and
- progress made on diversity and inclusion has been disappointing.
The FCA will continue to engage with firms and will write again at the end of 2023 (P&CLII firms) and at the end of 2024 (LMII firms) to provide an updated view of key risks.