The Consumer Duty, introduced by the FCA, requires firms to deliver good outcomes for retail customers. For insurance, it reframed the relationship from selling within the rules to asking whether this product actually served the customer.
The four outcomes
- Products and services. Fit for purpose and priced fairly.
- Price and value. The cost is reasonable for the benefit.
- Consumer understanding. Communications are clear, not misleading.
- Consumer support. Help at claim and renewal is as good as at sale.
What it changes in practice
Firms must assess whether products deliver value, not just whether they are compliant. That touches pricing, including premium finance, claims handling, and how vulnerable customers are treated. The FCA’s pricing practices remedy and the Duty together reshaped renewal pricing.
What this means for you
The Duty gives you a standard to hold insurers to: a product should be suitable, fairly priced, clearly explained and well supported at claim time. When a firm falls short, the complaints process and Ombudsman weigh conduct against this standard. Our regulation coverage follows Duty developments as they land.