FCA General Insurance Practices
A message to our product distributors Information correct as of February 2025
The Financial Conduct Authority (FCA), in its Policy Statement (PS21/5) introduced new rules on general insurance pricing practices and product governance.
Alesco strongly supports any initiative designed to improve outcomes for policyholders. We have in place an established framework of periodic product assessments, using factual indicators to assess risk and value.
New rules came into effect on 1 October 2021 and 1 January 2022. As an FCA-authorised firm, you will be familiar with these requirements (in particular those affecting your sales processes and if you act as a price-setting intermediary). We explain here how Alesco intends to fulfil the requirements which fall on product manufacturers in respect of product value.
On this page, we provide guidance and resources to help support those firms that are distributing our products. In particular, you will find Target Market Statements to help you understand the intended sales population, and Fair Value Assessments so that you understand the work Alesco has carried out to assess the value of our products.
Fair value assessments
For a limited number of our products, we have identified that we are the manufacturer. For these products, we have completed Fair Value Assessments, in order to provide assurance that our products continue to offer value for money to the intended customers, that they perform as the policyholder expects, and that there are no risks of dilution of this value.
These assessments include consideration of product information such as the nature of the product, coverage and exclusions, the target market, the way we price the product (including the remuneration paid to Alesco and other distributors, in particular given the services provided), the potential value of the product over a reasonably foreseeable period, and any indicators that suggest the product may not be providing value to customers (including complaints, claims, and sales).
We are in the process of completing the Fair Value Assessments*. While the detailed work has not yet been published, we have summarised the work undertaken to date along with the high-level emerging conclusions for your information, which will be added to this page shortly.
*We will be adding additional fair value assessments to this page if / when we complete them.
Target market statements
Where we are product manufacturers or hold product manufacturing responsibilities, we are required to supply information about the intended target markets for Alesco products. We have produced a series of Target Market Statements relating to our product groups, which can be found below.
Please note that our Target Market Statements are only intended to provide an indicative summary of the target market for a product, and are not intended to be a detailed summary of coverage. They are not intended to be shared with policyholders. Please refer to the relevant policy documentation for full details of the coverage provided.
We are in the process of finalising the Target Market Statements**.
**We will be adding additional target market statements to this page if / when we complete them.
In addition to the above, we have collected, and are making available, Fair Value Assessments / Target Market Statements for products we distribute on behalf of the Product Manufacturer.
Information to follow shortly.