The FCA published its policy statement PS21/5 in May 2021 which set out its final Product Governance rules that came into effect on 1 October 2021. The existing regulatory requirements under the FCA’s Product Intervention and Product Governance Sourcebook (PROD) were extended to introduce a new obligation requiring regulated firms to complete detailed reviews on their products in scope by 30 September 2022, to ensure that products continue to provide fair value to customers.
Both the FCA’s PROD, and the Insurance Distribution Directive (IDD), require Product Manufacturers and Co-Manufacturers such as Optio to share information about their in-scope products with their Distributors (in-scope products are defined as all products excluding contracts of large risk and reinsurance). A summary of the information which Optio is obliged to share is as follows:
- Information on the product type and characteristics;
- Confirmation of Optio’s role in the distribution chain of the product;
- Details outlining the intended target market; and
- The final outcome of Optio’s fair value assessment.
It is key to note that the regulatory rules require the information shared, and the assessment undertaken, by Optio to be done so at product level rather than at individual risk level. This means that Optio is assessing whether the product as a whole provides fair value to the end customer, rather than reviewing specific contracts of insurance.
Due to the above, Optio has undertaken and completed assessments of the products in-scope of the regulatory rules pertaining to Fair Value Assessments. This page contains a summary of the finalised Fair Value Assessment, and overall outcome, for each product. As a minimum, Optio will review its in-scope products annually or more regularly where required. Any changes to the product itself, or the outcome of the overall assessment of this product, will be updated here.
The content of these documents is not intended to be shared with policyholders and individual policyholders should refer to their full policy documentation for details of their cover.
If you have any questions about the information contained on this page, please contact compliance@optiogroup.com in the first instance.
Fair Value Assessment - Architects
Fair Value Assessment - Design and Construct
Fair Value Assessment - Engineers
Fair Value Assessment - Excess PI
Fair Value Assessment - Insurance Brokers
Fair Value Assessment - Miscellaneous
Fair Value Assessment - Property Professionals