Product Value Policy Guidance Manual


The competitive insurance marketplace and diverse and evolving insurance needs has seen some General Insurance Brokers becoming involved in the development of insurance products as a wholesaler and becoming part of a distribution chain.

As such, the Financial Conduct Authority (FCA) has been monitoring these types of firms and activities by carrying out thematic studies.

Ecompli supports a number of General Insurance Brokers who are involved in the manufacturing and/or distribution of general insurance so we decided to produce a Product Value Policy Guidance Manual. This includes guidance on what firms should consider when manufacturing and/or distributing insurance products. It also includes a section at the end with examples that the FCA consider unsuitable.

We hope this manual will provide guidance and assist firms so that they can meet the FCA requirements. It can also act as evidence to Insurers that the firm has taken on board the FCA reviews and the culture it has embedded.



  1. Introduction
  2. Guidance for Insurance Product Manufacturers
    1. Product Distribution Strategy
    2. Price and Remuneration
    3. Management Information – Risk Assessment
  3. Guidance for Insurance Product Distributors
    1. Price and Remuneration
    2. Management Information
  4. Unacceptable Examples of Poor Value and Service
    1. Example 1 – Tour operator travel insurance products for coach trips
    2. Example 2 – Claims services being provided under delegated authority
    3. Example 3 – GAP Insurance
    4. Example 4 – Scratch and Dent Insurance
    5. Example 5 – Tradesman Insurance
    6. Example 6 – GAP insurance potentially sold to ineligible customers or those who do not need cover
    7. Example 7 – Failure to fulfil obligation – Travel insurance and scratch and dent insurance