Product Governance and Fair Value Assessment Outcome
Product: Combined Liability and Commercial Property
This product is jointly manufactured by BLW Insurance Brokers Limited and the following insurers:-
- Chaucer Insurance Company DAC.
- JRP / Ergo
- Legal Protection Group
To comply with their obligations under the FCA’s rules* (PROD 4.2.27 – 4.2.32), the following is provided to distributors of this product:
Product Approval Process
BLW’s conduct risk framework, along with the accountabilities of all parties within BLW, ensures that we offer products that meet the needs of the intended market and that there is evidence of good customer outcomes of products before distribution. There is regular reporting and review of management information internally to identify any adverse outcomes.
There is a Product Governance Committee which assesses new and existing products and any significant changes against various criteria. This product is reviewed on a cyclical basis to ensure that it continues to be offered to the customers it is intended for and in the locations it was agreed to be distributed.
The Product Governance Committee define our approach to ensuring fair outcomes and report to the Board of Directors. This includes a review of the conduct risk framework and the Board approval for the following year.
This product is also subject to oversight as part of the annual
Fair Value Statement
Both BLW and insurers have each made an initial fair value assessment, having reviewed the available data and any information provided by the distributor(s) and are comfortable to confirm that there is value in the product.
BLW has considered the following factors:
- Total price paid by the insured entity
- Acquisition costs (including all commission to BLW and any distributors)
- Product value including foreseeable value
- Loss ratios and exposures
- The insurers’ approach to pricing business
- Customer outcomes through factors such as claims denials, claims frequency, average claims paid, claims withdrawn, cancellations and complaints.
* The requirement to ask for the outcome of a manufacturer’s fair value assessment is an obligation on the distributor (under PROD 4.3.2A & 4.3.3) and not the manufacturer. The FCA however, expects greater collaboration between manufacturers and distributors and for manufacturers to pro-actively provide this information.
Target Market Statement
As manufacturer of this product, we are required to provide distributors with appropriate information about the target market. The information is intended to provide clarity around for whom the product is designed, who it is not intended to support and how we expect the product to be offered to customers.
Please continue to refer to the relevant policy documentation for full details of the insurance cover as well for details of any limitations and/or exclusions.
What is this product?
This is a UK Combined Liability and Commercial Property General Insurance product.
Who is the product designed for and how is it suitable for their needs?
This product is suitable for any for UK-based micro enterprises and SMEs seeking commercial liability insurance for their businesses.
Who is this product not designed or suitable for?
The product is not designed for clients that do not run a commercial business or are seeking to protect their personal liability outside of their business or entities domiciled outside the UK, Northern Ireland, Channel Islands and Isle of Man
Is this product sold on an advised or non-advised basis?
This product can be sold both on an advised and non-advised basis, in line with FCA or local regulations
How can this product be sold?
This product can be sold face to face, via telephone or electronic communication or a mix of these methods, as long as customers are provided with sufficient information to make an informed decision regarding the suitability of the product.
Document Review
We will review this Target Market Statement on an annual basis to ensure it remains appropriate and in line with the objectives and needs of the Target Market
Conclusion
We are committed to ensuring Fair Value in our products and this assessment further enhances our existing Product Governance framework and our ability to measure and demonstrate that customers receive fair value.
