2017年-FCA英国金融行为监管局_fair_treatment_of_long_standing_customers_in_the_life_insurance_sector_4页_161kb

Summary of Regulator Assessment: Qualifying Regulatory Provisions

Core Content

This document outlines the FCA's assessment of the regulatory activity related to the fair treatment of long-standing customers in the life insurance sector. The guidance, FG16/8, was issued following a thematic review (TR16/2) conducted in 2014 and 2015, which identified practices that could lead to unfair treatment of long-standing customers—defined as those with products sold before 2000 and closed to new business.

The FCA aimed to ensure that long-standing customers receive the same level of attention and service as new customers. The guidance provides a clear and integrated source of information on FCA expectations in four key areas: strategy and governance, communications, fund performance and policy values, and the ability of customers to move between products.

Main Points

• Lead Regulator: Financial Conduct Authority (FCA)
• Date of Assessment: 6 March 2017
• Commencement Date: 9 December 2016
• Scope: Applies to life insurance firms across the UK
• Affected Businesses:
  • Approximately 40 firms or groups
  • Around 70 small friendly societies (not included in the 40)
• BIT Score: 7.5 (net cost to business for five years)

Key Regulatory Provisions

The guidance addresses the following areas to ensure fair treatment of long-standing customers:

1. Strategy and Governance: Ensuring long-standing customers are treated fairly within the firm's overall strategy and governance framework.
2. Communications: Providing clear and timely communications to long-standing customers about policy features at regular intervals and key product lifecycle points.
3. Fund Performance and Policy Values: Giving adequate consideration to fund performance and policy values to ensure fair and proportional treatment.
4. Product Mobility: Enabling customers to move from products that no longer meet their needs in a fair and reasonable manner.

Cost and Benefit Analysis

Cost Estimates

• Total Net Present Value (NPV) of Costs: £13.9 million over the next ten years
• Net Cost to Business (EANDCB): £1.5 million for five years
• BIT Score: 7.5

The costs are divided into four outcomes:

These costs are not discounted and are primarily associated with implementing 'good practice' beyond existing regulatory standards.

Benefits

• Improved Customer Outcomes: The guidance is expected to enhance the treatment of long-standing customers, leading to better decision-making and satisfaction.
• Increased Consumer Confidence: Over the long term, improved transparency and fairness may increase consumer confidence, which could result in higher future sales and improved retention.
• Clarity and Integration: The guidance consolidates FCA expectations into one place, reducing regulatory uncertainty and providing a clearer understanding of obligations.

Cost Savings

No cost savings were reported by firms in response to the guidance.

Impact on Business Confidence and Perceptions

• The publication of the guidance did not significantly affect business confidence or consumer perceptions.
• Firms are expected to improve customer outcomes through better communication and service, which may lead to long-term improvements in consumer trust and satisfaction.

Impact on Different Business Sizes

• The life insurance sector is dominated by a small number of large firms.
• Larger and more complex firms are expected to incur higher absolute costs.
• Smaller firms affected by the guidance are relatively sophisticated, and the impact on them is minimal compared to larger firms.

Additional Information

• FG16/8 Guidance: Fair treatment of long-standing customers in the life insurance sector
• TR16/2 Thematic Review: Fair treatment of long-standing customers in the life insurance sector