It’s part of who we are - that’s why it’s one of our values. It’s not just important to us: doing the right thing by our customers is a fundamental part of a new regulation called Consumer Duty, introduced by the UK’s Financial Conduct Authority (FCA).
The Consumer Duty sets the standard of care firms should provide to customers in retail financial markets. It consists of several elements:
A firm must act to deliver good outcomes for retail customers.
Three cross-cutting rules
Act in good faith towards retail customers
This is a standard of conduct characterised by honesty, fair and open dealing, and acting in line with the reasonable expectations of customers.
Avoid causing foreseeable harm to retail customers
Firms must take proactive and reactive steps to avoid causing harm to customers through their conduct, products, or services where it is in a firm’s control to do so.
Enable and support retail customers to pursue their financial objectives
Firms must proactively and reactively focus on putting customers in a better position to make decisions in line with their needs and financial objectives.
Products and services outcome
Products should be fit for purpose, designed to meet consumers' needs and targeted to those consumers.
Price and value outcome
Products should be fairly priced and offer value to the consumer. Fair value is much more than just price: the product should respond how the consumer expects it to, and there should be a reasonable relationship between the price paid and the benefit a customer receives.
Consumer understanding outcome
Communications must give customers the information they need to support and enable them to make decisions that are effective, timely and properly informed. Communication must be in a way that is likely to be understood by the customers intended to receive the communication.
Consumer support outcome
Firms should design and deliver support that meets the needs of customers, including those with characteristics of vulnerability. This should enable consumers to realise the benefits of the products and services they buy, and avoid foreseeable harm.
At Beazley we strive to:
Our underwriting and claims teams are here to support any questions you may have on our approach to embedding Consumer Duty across Beazley.