Product Governance
With effect from 1st October 2021, the Financial Conduct Authority (the regulatory body of the Financial services sector) introduced new regulation that focuses on ensuring the products that we distribute on behalf of our insurer panel are suitable for our customers, and that the value they provide meets their expectations. It is our responsibility to avoid customer harm wherever possible.
In response to this new FCA regulation, Connect Insurance have undertaken a thorough assessment of the products we distribute in order to adhere to the FCA’s Product Intervention and Product Governance Sourcebook.
What this means for our customers:
As a result of the product reviews we have undertaken, our customers may notice a reduction/variation in the products that are available through Connect Insurance, or a reduction/variation in the range of insurers who we distribute products on behalf of.
It is important that we only provide products to their intended markets, and that the products we distribute offer good value. This includes ensuring the commission we receive is proportionate, any combination of products we provide at the point of sale compliment each other adequately, and that we only receive remuneration in the form of “fees” that reflect the time, work and service we undertake on your behalf as our customer. The goal of this regulation is to provide better and fairer insurance coverage for our customers.
How we review our products:
In order to sufficiently review the products we distribute, and to assess the value they provide, we evaluate the respective policy wordings, endorsements and product features, and compare these to other available products. A simplified overview of the product’s core features and benefits can be found in the relevant Insurance Product Information Document (IPID).
Additionally we undertake to liaise with the manufacturer(s) of a product to ensure they have followed best practices when designing the product. This affords Connect Insurance the insight into the methodology and reasoning behind how the product has been created, assessed and priced. This helps us to minimise customer harm.