What impact are the new product governance rules having on insurance businesses?

On October 1st 2021, the FCA put enhanced rules on product governance into action. These rules are designed to make insurance executives and firms provide fair value to all of their customers. 

Naturally, this has shaken up the insurance world and had a profound impact on businesses within this sector. Many changes are already underway, with companies looking for advice on how to adapt to the new rules. What exactly do these rules mean for insurance businesses? Here are some of the key ways firms are impacted:

Value reviews

The whole purpose of the new regulations is to make insurance agencies review the value their products provide all customers. This poses a challenge as many companies are unsure what constitutes a product and what needs to be reviewed. There are also concerns over if they are a co-manufacturer of a product, will it mean they have to assess fair value, or is it down to the main insurer? We’ve also seen problems with insurance agencies not understanding what fair value actually means. 

Mass data management

As part of the review on product value across the industry, insurance businesses are going to have mass amounts of data to manage. A lot of data will also be shared amongst insurers and brokers, leading to concerns over how all of it can be safely managed. Therefore, insurance businesses are looking for data management solutions to help them stay on top of the new rules coming into place. 

Technology solutions

Similarly, insurance businesses are concerned about how they will then use and analyse all their customer data to work out the true value of their products, letting them see if they comply with the rules or need to make changes. Old school methods – like spreadsheets and manual data inputting – are quickly being seen as impractical and inefficient ideas. So, companies are searching for technology solutions as a result of the FCA regulations. 

How can insurance businesses adapt?

Implementing and understanding these new rules can be a challenge for companies within this sector. Thankfully, there is a solution to address the problem and ensure that insurance agencies are compliant. By working with specialist recruitment insurance agencies, you can hire experienced senior-level individuals to work with your company during the transition to the new regulations. 

Effectively, headhunters for insurance jobs can help you find the talent you need to understand how your business needs to change to align with the FCA’s new rules. With new experience onboard, it allows you to combat the challenges listed above. After all, who better to help guide you through this period than individuals with mass amounts of experience in the insurance sector? 

If you’re keen to start the recruitment process, we can help you run an insurance executive search to unveil the best talent in the industry. From here, you can recruit someone to help you implement all these new rules and avoid any FCA penalties. 

For further advice and industry knowledge, contact Phil Ruck, Managing Consultant on +44(0)1242 239147 or email philruck@mosaicss.com