Managing Insurance Conduct Risk

Course Outline & Objectives

There is a now a broad understanding of the regulatory structure within general insurance firms, but it remains an emerging landscape. Business conduct is in a bright and unforgiving spotlight and – in the absence of anything prescriptive from the FCA – firms are defining what conduct risk means in and for their business.

Current activity in many companies is being determined by past regulatory action, wariness over FCA thematic priorities and fear of arbitrary supervisory action. This has led to a focus on downside risk avoidance – as if “conduct risk” was a component of operational risk – with the potential consequence of a disproportionate response.

This workshop is designed to connect the similar and overlapping regulatory themes of managing conduct risk, fairness and TCF with the underpinning common denominator of culture.

Specifically, it will help insurance professionals:

• Define, interpret and understand conduct risk and how it relates to Treating Customers Fairly and a fairness culture
• Revise the TCF Customer Outcomes, what they mean to the firm and its business model
• Differentiate between what is fair and unfair customer treatment
• Identify customers’ “moments of truth” and how different functions can influence these across the product life cycle
• Translate the regulatory expectations into robust yet workable and proportionate processes, systems and controls: effective product governance
• Recognise where fairness is – or needs to be – further embedded in the culture
• Show that fairness is not just a regulatory “must do” and how “doing the right things by customers” is a source of competitive advantage.

Who is it for?

This course is for both insurers and brokers, for Approved Persons in Significant Influence Functions and those in Compliance, Operations and Line Managers whose role will be directly impacted by more explicit and more rigorous regulatory expectations, expectations that go to the heart of the business and how it is run.

Training Approach

The workshop is part briefing, part training and part forum: combining tutor input, opportunity for discussion, examples to challenge and case studies to bring the subject to life and reinforce confidence.

Course Agenda

Topics may include but are not limited to:

• The aim and operational objectives: conduct risk
• Your culture: avoiding poor outcomes for customers or achieving good ones?
• Your business model, strategy and culture: future conduct risk?
• TCF Mk 1 in hindsight
• TCF within the regulatory priority of “fairness”
• Beyond the 6 Customer Outcomes
• The “moments of truth” in the customer experience
• Applying the product life cycle to the distribution chain: customer needs, risks and exposures
• Understanding “culture”
• Drivers of a fairness culture
• What should we measure; what can we measure?
• Leading vs lagging MI: what does it tell us?