Product Governance

With effect from 1st October 2021, the Financial Conduct Authority (the regulatory body of the Financial services sector) introduced new regulation. This regulation ensures the products that we distribute on behalf of our insurer panel are suitable for our customers. It also ensures that the value the products we distribute provide meet customers 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. This ensures we 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 our products. Alternatively there may be 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. It is essential that the products we distribute offer good value. This includes ensuring the commission we receive is proportionate. It includes ensuring any combination of products we provide at the point of sale compliment each other adequately. We must 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 undertake the following. 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.