We are committed to delivering products that offer fair value to our customers. This update is intended to explain what changes we are making in respect of the FCA’s new rules surrounding multi-occupancy buildings insurance and leaseholders. These changes demonstrate our ongoing commitment to transparent communication and delivering quality products at a fair value to our customers.
What are the updates?
The following updates will apply to any in-scope quotation or renewal offered on or after 31st December 2023:
- Coverholder commission will be displayed on the policy schedule (in monetary terms).
- Broker commission will be displayed on the policy schedule (in monetary terms).
- Premium breakdown to show cost of residential portion of premium including cost for individual flat or dwelling.
- New question on extranet Property Owners products regarding leaseholders involved and, where relevant, the number of flats.
Why are these updates happening?
For Property Owners’ policies with a residential aspect, Folgate will provide a breakdown of premiums and commissions. This will:
- Increase transparency for policy stakeholders.
- Make it easier for policy stakeholders to identify and challenge poor practices.
- Incentivise firms to ensure their products meet the needs and interests of policy stakeholders.
- Ensure that products provide fair value through pricing, and that remuneration practices do not lead to poor outcomes.
If you have any queries, please do not hesitate to get in touch via the number or email addresses below.
Tel: 0207 256 3100
Business Development: email@example.com