The FCA has published their 2018 Sector Views. Here are a few of the FCA’s focus areas relating to General Insurance.
Cyber attacks are becoming more frequent and widespread. The issue is potentially made worse by the use of complex and legacy IT systems and greater level of data sharing between firms.
Firms need to ensure they are ready to meet the standards of GDPR.
Financial crime and fraud continues to increase.
A thematic review in 2016 found that over half of the principal firms involved could not consistently demonstrate effective risk management and control over the activities of their Appointed Representatives. The FCA remains concerned about governance issues around Appointed Representatives.
Many consumers focus on the headline price and may not realise that the product they buy is not suitable until they try to make a claim.
Still on the subject of pricing, switching rates remain low. It is too early to assess whether the new disclosure requirements will be effective in encouraging consumers to shop around at renewal time.