The FCA issued Thematic Review TR16/2, 'Fair Treatment of long-standing customers in the life insurance sector' on 3 March 2016. The work by the FCA in this area has already led to six insurers facing enforcement action and, in our opinion, has the scope to have considerable impact on the industry as a whole.
In this briefing note we focus on why the Review is important as well as a high level summary of expectations.
We look in further detail at the structure of the report and four high level outcomes as the FCA determine whether firms were treating their closed-book customers fairly.
In conclusion we consider key findings, a cost benefit analysis and touch on the wider considerations and next steps insurers might wish to take.