Wholesale Insurance Brokers market study
10 June 2019
The Financial Conduct Authority (FCA) published its final report of the Wholesale Insurance Brokers’ market study. Launched way back in November 2017, its aim was to assess how competition was working in the sector
The Wholesale Insurance Brokers market study
- firms’ management of conflicts of interest;
- the information firms disclose to clients; and
- contractual agreements between brokers and insurers which, in a small number of cases, have the potential to limit competition.
- identifying customers’ insurance demands and needs
- product oversight and governance
- customer best interest rule.
The FCA plan to continue to work with firms to address the above concerns and will continue to monitor the market as part of its normal supervision function. This includes assessing developments arising from the impact of EU withdrawal and possible further consolidation in the industry and as a consequence of any changes in business models.
Practical steps brokers can take
- Have you carried out and updated your Conflicts of Interest Gap Analysis?
- Have the results of said analysis been transferred to a risk register with appropriate mitigation procedures and responsibilities?
- Have you reviewed your client facing documents to ensure that all the correct disclosures and information is available?
- Are all your agency agreements up to date and reflect current practice and regulatory thinking, here you may need the input of an appropriately experienced lawyer.
- Thinking about the IDD element, where you have schemes, have you familiarised yourself with the product oversight rules, these can be quite complex and do place additional responsibilities on a firm?
- In the midst of all the ‘noise’ don’t lose sight of the fundamentals which are really now encapsulated under the ‘Customer Best Interest’ rule.