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FCA review into the provision of general insurance highlighted failings in information provision
It’s not always easy interacting with customers, particularly when informing them of the choices which they can make in respect of products and pricing. On the one hand there is a drive to cut down on red tape, on pages of terms and conditions which to be frank most people rarely read. On the other hand there is the requirement to act in their best interests, to ensure that customers have the right information which will enable them to make informed decisions.
It is this latter aspect of the customer relationship which the FCA has highlighted in their recent review of the “provision of premium finance to retail general insurance customers”. Focusing on the online sale of motor and general insurance the review followed the customer journey to the point at which payment details were entered. Following the review the FCA has highlighted three areas in which it believes many firms are not providing information in such a way as to enable customers to make informed decisions. These are the provision of:
The FCAs conclusion is that the failure to provide appropriate information could be a barrier to informed decision making as well as an indication that firms are not fully compliant with a number of regulations including treating customers fairly and communicating in a way which is clear, fair and not misleading.