LV= Broker’s distribution and underwriting director says ’there’s likely to be quite a high level of disruption to market pricing and propositions’ following the implementation of the FCA’s pricing reform changes
LV= General Insurance (LV=GI) has showcased its commitment to working closely with brokers ahead of the FCA’s impending fair value measures and pricing remedies, issuing an email newsletter to broker partners today (26 August 2021).
Due to come into effect over staggered deadlines on 1 October 2021 and 1 January 2022, the FCA’s changes aim to enhance competition, ensure customers receive fair value and increase trust in the insurance market - in part, by eliminating the practice of price walking.
Addressing brokers via a digital communciation, Mike Crane, LV= Broker’s managing director, said: “For the insurance market overall, this is a very significant change.
”We’re committed to working closely with you to make sure the transition is smooth and delivers on the benefits expected for customers.”
Wider impact and opportunities
The company said it was working through the impact of the FCA’s recent reports and updates, to understand any actions that need to take place.
For customers, LV= Broker said that all its products will be compliant with the new pricing rules before the implementation deadline.
The business added that it will not be creating any new products and there will be no changes to the way customers access its existing product range.
As for bespoke arrangements, if any changes are needed, LV= said it will discuss this with customers individually prior to the FCA’s new rules coming into effect.
Michael Lawrence, LV= Broker’s distribution and underwriting director, said: “There’s likely to be quite a high level of disruption to market pricing and propositions over the coming months.
“Whilst it may appear on first sight that it might not affect every market participant, I’d encourage everyone to consider the wider impact and opportunities the rules might present.”
Insurance Times has contacted LV= for further comment.