Attending (virtually) the ABI annual conference early this week I had the distinct impression of an industry that is ready to move on from the BII test litigation which has dominated debate in the sector for the last nine or so months. ABI Chair & Allianz CEO Jon Dye said that the lessons to be learned from the case were in the need for clarity on policy wordings and in managing customer expectation. But in one sense the spotlight still shines on BII, as illustrated by the call from the FCA for relevant claims now to be paid promptly and in its letter this week setting out very clear expectations of intermediaries involved in the claims process.
Following immediately after BII, the next regulatory tsunami hitting the industry will be the FCA’s remedies package on general insurance pricing. The pricing review was – rightly – among Jon Dye’s three key strategic priorities for the industry this year (the others being the climate challenge and the review of Solvency II). The final GI pricing review consultation closed on 25 January and a policy statement is due from the FCA in Q2 2021, i.e. in the coming weeks or months. Implementation of the final package of remedies will shake up ‘price walking’ once and for all, with tangible long-term effects on business models across all distribution channels.
Alistair Kinley, Director of Policy & Government Affairs firstname.lastname@example.org