FCA General Insurance Pricing Practices

Here's what you need to know from us

Posted on 28th September 2021 Tagged in Regulation & Change Personal Lines
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Our industry welcomes the Financial Conduct Authority’s (FCA’s) new rules related to General Insurance Pricing Practices. We believe these are positive changes for consumers. However, the new rules mean we need to change several aspects of the way we work.

You can read the full text of the FCA’s new remedies as they are set out in Policy Statement PS21/5, here. We encourage you to review the new rules in detail and ensure compliance by the required deadlines.

In short, the FCA’s package of changes will:

  • ensure that renewal quotes for existing home and motor insurance consumers cannot be higher than quotes for a new business customer
  • enhance product governance, to be sure we’re all delivering fair value to customers, which now includes premium finance
  • enhance FCA reporting requirements to include pricing and value measures, to ensure more effective market supervision
  • and make it easier for consumers to cancel the auto renewal of their policies
  • increase transparency of what a customer pays for premium finance compared to an annual policy.

Here's what’s changing at Ageas, to ensure we meet the expectations of the FCA’s new pricing practices as well as some some of your FAQs.

FAQ: What do changes to mean to brokers?

In short, the changes will make insurance pricing fairer for customers. But this does mean some policies and processes must change. For you, this means reviewing your value, pricing and your proposition.

  • Reviewing the value of every product you sell, our policies or someone else’s.
  • Understanding how the new pricing rules may apply to your business.
  • Making sure there’s no duplication of cover, and target markets are consistent.
  • Ensuring any fees or charges you’re applying are representative – because your business model cannot have a negative impact on the value customers get from a policy.

The key to success lies in ensuring you and your team conduct a thorough review in plenty of time.

FAQ: What's the impact to the Ageas Household range?

We’re switching off auto renewals for a number of products (including some commission variants) in our Household range before the FCA’s deadline of 1 January 2022 comes into force.

We’re switching off automatic renewals for the following policies on 31 December, so you will need to rebroke any affected policies manually before they lapse.

Household products (switching off via all software houses)

Ageas code Product  SSP CDL Open GI
HGEX01 House Guard BEDS 15 FTS5 FH FB5F
HGEX05 House Guard BEDS 25 FRT1 B0 FB25
HGEX03 House Guard SI 15 FTS6 FF  F5F
HGEX06 House Guard SI 25 FRT0 BF F25F 
HGCX02 Countrywide Avenues BEDS 17 - - CB6F
HGCX03 Countrywide Avenues BEDS 27 - -  CB26
KCBD03 Key Choice Beds 25 FTK7 - -
KCBD01 Key Choice Beds 15 FTK5 - -
HGEX03 Key Choice Crystal X FTS9 - -
MNEX02 Prestige MNW Home 25 FRT3 BH  GP25
MNEX03 Prestige MNW Home 30 - FM -
OLEX02 Optima Landlords 30 AOL1 - -

Household products (also switching off via CDL & Acturis only)

Ageas code Product  CDL Acturis
HGEX02 House Guard BEDS 20 FI n/a
HGEX04 House Guard SI 20 FK n/a
MNEX01 Prestige MNW Home 20 FL n/a
AILG01 House Guard 15 JG n/a
AILG03 House Guard 25 J7 n/a



Please rebroke any of your impacted Household polices to these continuing Ageas policies:

House Guard (CDL & Acturis only)

Ageas code Product  CDL Acturis
AILG02 House Guard 20 HC n/a

House Guard (All other software houses)

Ageas code Product  Open GI SSP
HGEX02 House Guard BEDS 20 FB2F FTS4
HGEX04 House Guard SI 20 F2F FTS7
MNEX01 Prestige MNW Home 20  GP20 FRT2
OLEX01 Optima Landlords 20 - AOL0
KCBD02 Key Choice Beds 20 - FTK6
HGCX02 Countrywide Avenues BEDS 22 CB2F -
FAQ: What's the impact to the Ageas Private Motor range?

We’re switching off auto renewals for a couple of products in our Private Motor range on Applied before the FCA’s deadline of 1 January 2022 comes into force.

We’re switching off automatic renewals for the following policies on 31 December, so you will need to rebroke any affected policies manually before they lapse.

Private Motor products (switching off via Applied only)






Please rebroke any of your impacted Motor polices to this continuing Ageas policies:

Ageas Private Car (Applied only)


Ageas Private Car

Product Governance & Value (needed from 1 October 2021)

To complete value assessments for all our products, we may need some information from you to help us meet some of the FCA’s requirements.

This is likely to include:

  • details of your remuneration arrangements (including commission rates, fees, charges, etc).
  • information about any optional or ancillary products (including premium finance) that you’re selling alongside Ageas’s products that may affect the value of the offering.

We’ll contact you directly with details of what we need from you.

We’ll also provide you with some additional information about our products, demonstrating how they provide value to their target market.

If you’re ever concerned our products aren’t as described, or they’re adversely affected by something else you’re selling as part of a package, then please do contact us. We’ll work with you to find a solution to the situation.

Pricing Remedy – ENBP (coming into force 1 January 2022)

As you’ll know, the FCA’s Pricing Remedy means some pricing approaches must change.

By 1 January 2022, all existing customers must be offered a renewal price that’s no greater than the equivalent new business price (ENBP) for a new customer.

These rules apply to all private motor and household insurance products sold to consumers, plus any add-on products sold with them (including premium finance). The pricing remedy itself applies to the end price being charged for all relevant products. This applies to insurers for net or gross rated prices, and to you - if you have any role in setting commission or policy set up fees.

We’ll make sure that all our products’ pricing meets the rules for renewal invites going out from the 1 January 2022. 

You’ll hear more from us about these changes as we get closer to the FCA deadline (we have started a conversation with some of you directly in particular arrangements).

Premium Finance (coming into force 1 January 2022)

Customers must have the right amount of information about the cost of using premium finance to pay for their insurance.

From 1 January 2022, premium finance must be treated as an ‘optional additional product’ and customers must actively choose it, knowing that it costs more than alternatives or paying upfront in full.

With that in mind, the FCA wants providers to improve the pre-contract information that’s being given to customers when they’re using premium finance. That detail needs to explain that the premium finance will make the transaction more expensive, and it needs to be clear if the finance will be paid for over a term that differs to the duration of insurance policy.

There are also new rules to ensure that where premium finance is offered, it does not conflict with the Customer’s Best Interests rule - with specific reference to how firms are remunerated for offering premium finance.

We’re removing our premium finance facility for all new business and renewals across our Personal Lines products. You can read more about that change here.

Auto Renewals (coming into force 1 January 2022)

Customers must have the right amount of pre-contract information about a product’s auto renewal feature.

The FCA wants customers to have enough information on auto renewal to make an informed choice before actively electing to take auto-renewal. Customers must understand that they can change their minds at any time – without any barriers to make their required changes.

General Insurance Values Reporting (required by 28 February 2022)

New rules came into force on 1 July 2021, requiring insurance firms to report on and publish General Insurance Value Measure Data on an annual basis.

Overall, these rules aim to reduce poor value in product offerings, and they widen the scope of the reporting process that’s been piloted since 2016.

The first new report will contain six months’ worth of data only, for the period 1 July 2021 - 31 December 2021.

If you’re considered to be a ‘co-manufacturer’ of one or more of the products that Ageas Insurance Limited underwrites, then we’ll be in touch from October 2021 to agree on the reportable data and duties in readiness for submission by 28 February 2022.

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