Laura WilesFollowing its consultation on the regulation of commercial and bespoke insurance business, which closed on 16 September, the FCA has partially reopened questions in the discussion paper to gather more feedback.
The original consultation sought views on whether the FCA’s current rules for commercial insurance products achieved the right balance between safeguarding customers and ensuring market competition. To this end, it considered the point at which some commercial insurance rules are disapplied based on the size and nature of the commercial customer. It consulted on options to replace the large risks model with the DISP eligible complainant threshold, removing product-specific rules, or developing a new definition. It also consulted on the rules that apply where multiple firms are responsible for manufacturing insurance products, and methods of clarifying how the bespoke contracts rules apply.
The FCA is revisiting questions relating to each of the commercial insurance, co-manufacturers, and bespoke contracts sections of the original discussion paper.
The reopened consultation closes on 10 January 2025.