Regulatory Timeline: General Insurance Pricing Practices

Status: Policy Statement and Final Rules issued. 
Regulator: FCA

The FCA focus on pricing was precipitated by the Citizens Advice supercomplaint to the Competition and Markets Authority in September 2018. Amongst the 5 markets, Citizens Advice complained that in their view, harm was being caused to consumers through a loyalty penalty in the motor and household insurance markets. The FCA responded with the announcement of a review in October 2018 and their most recent report in September 2020 has made a number of recomendations, including a statement that “While our focus is primarily on the home and motor insurance markets, we propose to apply some of our remedies to all types of general insurance and pure protection insurance.”.

The Policy Statement and Final Rules were issued on 24th May 2021. The new rules cover:

  • A pricing remedy;
  • Enhancements to product governance;
  • Rules to offer a range of accessible and easy options for consumers who want to cancel auto renewal contracts;
  • Reporting requirements for home and motor insurance markets.

All insurance firms should familiarise themselves with the changes to understand the implications for their Product Governance processes and the implications if they have any products which include auto-renewal processes. 

There are links with the work on Distribution and Vulnerable Customers which firms should be conscious of.

This timeline provides key dates in the regulatory calendar and links to ICSR articles and webinars on the subject. If you would like to discuss any aspects of General Insurance Pricing, please contact us.

Back to Regulatory Timeline: Overview

9th April 2018

FCA Business Plan 2018/19

The FCA Business Plan in 2018/9 indicated an intention to “Understanding firms’ pricing practices in retail general insurance.”

Read FCA Business Plan 2018/9

28th September 2018

Citizens Advice supercomplaint to the CMA

Citizens Advice lodged a super-complaint with the Competition and Markets Authority that included allegations of harm being caused to consumers on the motor and household insurance markets.

Read Citizens Advice super-complaint

31st October 2018

FCA Terms of Reference

The FCA Terms of Reference for a Market Study were published. “This market study will deepen our understanding of consumer outcomes from pricing practices, the scale and nature of any harm and inform how to, if necessary, improve the market.”

Read Terms of Reference

4th October 2019

FCA Interim Report Released

The FCA released their interim report on General Insurance Pricing Practices. They concluded the home and motor insurance markets were not working well for consumers and that they were “considering a range of industry wide measures to reform these markets so they work well for consumers in the future.”

Read FCA Interim Report

16th October 2019

ICSR Article: Are you walking into a price problem? General Insurance Pricing and the FCA Remedies

Price Walking




ICSR Director Kenneth Underhill looks at the issues following the FCA Interim Report.

Read Article

21st October 2019

ICSR Article: Emerging Challenges for Complaints in the General Insurance Sector: Pricing Practices Within Retail General Insurance

Emerging Challenges for Complaints - Pricing Practices





A look at the risk of complaints arising from the pricing work undertaken by the FCA

Read Article

3rd June 2020

FS20/7: Product Value and coronavirus: guidance for insurance firms

FCA Guidance on product value, including price, is issued in the wake of the covid-19 pandemic. Firms are instructed to undertake product value reviews, which may have an impact on their pricing models. A deadline of 3rd December is set to complete the work.

Read FCA Feedback

22nd September 2020

FCA Final Report Issued


The FCA Report on General Insurance Pricing Practices is released setting out its findings and proposed remedies.

Read Report

22nd September 2020

FCA Consultation on Proposed Handbook Changes to address harm caused by issues with General Insurance Pricing Practices

The FCA have published proposed changes to the Handbook. The changes affect not only motor and household insurance products, but also include proposed changes to the existing product governance rules in the PROD sourcebook, changes to the rules on auto-renewal for any product and new reporting requirements.

Read Consultation on Handbook Changes

15th October 2020

Article: Pricing – ‘Fair Value’ Is Not Just A Household And Motor Issue

Insurance Pricing





Price walking has dominated the headlines as the FCA, CMA and Citizens Advice have all talked about the risks of consumer harm. Kenneth Underhill looks at the issues arising from the FCA Final Report on the matter.


Read Article

3rd December 2020

Deadline for completing Covid-19 Product Value reviews

Firms are expected to have completed their product value reviews. Finalised Guidance sets a deadline for firms of 3rd December 2020.

Read Finalised Guidance

25th January 2021

Deadline for comments on Consultation Paper

Submit feedback

23rd March 2021

Update from FCA Following Feedback

Read FCA statement

24th May 2021

FCA Policy Statement PS21/5 Issued

Read Policy Statement

23rd June 2021

Article: FCA’s New Rules Against General Insurance ‘Price Walking’

Price Walking





The Financial Conduct Authority (FCA) recently published its Policy Statement outlining the new rules to be implemented for General Insurance Pricing Practices (GIPP). Nicky Hasler sets out what the new rules are, who they apply to, and the impact of the new rules for the general insurance sector.


Read Article

18th August 2021

PS21/11: General insurance pricing practices - amendments

In May 2021, the FCA published PS21/5 which set out final rules to address the harm they had found in the GI Pricing Practices Market Study. On 18 August, they published PS21/11, making minor changes to those rules.

Read FCA Policy Statement PS21/11

1st October 2021

Implementation Period - Product Governance

The FCA are broadening the scope of the Product Intervention and Product Governance Sourcebook (PROD) to ensure firms have processes in place to deliver products that offer fair value to customers.

Read FCA Policy Statement PS21/5

1st January 2022

Implementation Period - Pricing Remedy

The FCA has introduced a ‘pricing remedy’, which means firms must now offer a renewal price to a consumer that is no greater than the equivalent new business price (ENBP) offered to a new customer. The implementation deadline is 1st January 2022

Read FCA Policy Statement PS21/5

1st January 2022

Implementation Period - Cancelling Auto-Renewal Policies

The FCA now expect firms operating in general insurance space to offer the consumer a variety of channels if they choose to opt out of their current contract upon renewal. Firm’s must implment changes to their practices by 1st January 2022.

Read FCA Policy Statement PS21/5

1st January 2022

Implementation Period - Reporting Requirements

The FCA have introduced new reporting requirements which require regular reports showing pricing information for home and motor insurance as well as add-ons and premium finance sold alongside these products. The reporting requirements are for Insurers, Brokers, MGA’s operating in the retail home and motor insurance products. The changes require reporting on renewals from 1st January 2022, with an attestation date of 31st March 2022 and the first data submission due for the 6-month period to 30th June 2022.

Read FCA Policy Statement PS21/5

Advisory & Resourcing

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