Clifford Chance

Enhancing Product Oversight and Governance

1 October 2024

The Financial Conduct Authority (the "FCA") has called on insurers and insurance distributors to ensure they demonstrate fair value and good customer outcomes in respect of general insurance ("GI") products and pure protection products, following its recent Thematic Review 24/2 (the "TR").

In August 2024, the FCA published the TR, examining information provided by 28 manufacturers (firms that create, develop, or design insurance products) and 39 distributors (firms involved in insurance distribution activities). This focused on 10 different GI products (excluding contracts of large risks and reinsurance) and pure protection products (such as life, medical, and income protection cover) to assess whether firms were ensuring that customers receive fair value and positive outcomes from the products and services they manufacture and distribute, as required under the FCA's Product Governance Sourcebook (PROD 4). The review revealed a lack of readiness among firms and outlined necessary actions to improve governance, product approval, management information ("MI"), and information sharing.

This briefing note sets out the TR's key findings and next steps for firms to ensure compliance with the FCA's expectations.

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