The Financial Conduct Authority (FCA) published their latest Dear CEO letter on 16 May 2024 which looks at implementing the Consumer Duty for closed products and services within the life insurance industry.

The Dear CEO letter sets out five priority areas for firms to consider before the 31 July deadline this year, along with action prompts for firms relating to each of the areas. These five areas are based on the FCA’s supervisory insights and feedback they have received. While the themes are not unique to closed products and services, they are likely to be more significant areas of consideration for closed business.

The five priority areas are:

1. gaps in firms’ customer data
2. fair value
3. treatment of consumers with characteristics of vulnerability
4. gone-away or disengaged customers
5. vested contractual rights.

Read our latest newsflash, in which Siobhan Lough and Kara Scott summarise these five priority areas and associated action prompts set out in the Dear CEO letter.

Click here to read our full newsflash

If you would like to discuss any of the topics in more detail, please get in touch.