The FCA’s report outlines findings from its thematic review into delegated authority arrangements within the general insurance market, stating that improvements are needed to due diligence and assessing consumer outcomes.

The thematic review looked into 12 insurers and 19 associated intermediaries and third party administrators.

The focus of the review was on concerns that firms did not manage its outsourcing arrangements accordingly.

The FCA was interested to see how firms handled third parties and how this may impact on the customer.

Core to the findings was that:

1. The regulatory requirements of outsourcing had not been adequately considered by firms.

Specifically,

2. There was a lack of consideration of whether the products underwritten by insurers treated customers fairly and a lack of understanding by intermediaries of their responsibilities.

 Read the full thematic review here.