FCA general insurance add-ons market study: Clarifying the rules on unbreakable bundles

General Insurance Add-Ons Market Study – Remedies: banning opt-out selling across financial services and supporting informed decision-making for add-on buyers

FCA Policy Statement 15/22 sets out rules and handbook guidance in relation to the FCA's ban on opt- out selling of add-on insurance effective from 1 April 2016; non-handbook guidance on giving appropriate and timely information when selling add-on insurances so that customers can make an informed decision. The non-handbook guidance applies immediately and the FCA expects firms to have made the necessary changes to their sales journey by 30 September 2016.

In this short article, ARAG provides comments on PS15/22 with regard to the opt-out selling ban of add-on insurance as we have witnessed some confusion about the new rules.

Topics covered:
• Ambiguity surrounding the FCA’s position on “auto embedding” covers.
• Ensuring clients don’t miss out on valuable insurance protection.