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Treating Customers Fairly
Dave Grimshaw is a co-author of a report entitled "Treating Life Customers Fairly" presented to the Staple Inn Actuarial Society on 13 March 2007.
The FSA's Principles for Businesses are coming under increased attention as part of its move towards principle-based, rather than rules-based, regulation. Principle 6 requires that "a firm must pay due regard to the interests of its customers and treat them fairly". This paper considers the implications of Treating Customers Fairly ("TCF") on UK life insurers from an actuarial perspective.
The paper focuses on selected areas of non-profit business:
- Unit pricing;
- Non-profit surrender, paid-up and alteration values;
- Reviewable rates;
- Unit-linked discretionary charges;
- Critical illness business, and
- Product disclosure.
Generic themes from these specific areas are also discussed. These findings, from both the actuary's and firm's point of view, include:
- Customer knowledge and understanding;
- Documentation and communication;
- Impact on reserves and profitability; and
- Governance.
For a copy of the paper please click here.
For further enquiries please email dave.grimshaw@barnett-waddingham.co.uk.
Barnett Waddingham LLP, March 2007.