What are the main changes ICOBS introduces? Are the standards set by the new rules higher or lower than before?
The main changes are that we have: • simplified our previous rules and removed some of the rules not required by directives, as part of our overall move towards more principles-based regulation; • added new high-level standards. These apply to the sale of all non-investment insurance. And for most products, they’re supported by fewer detailed rules and guidance than before; and • added detailed rules and guidance where necessary to protect consumers, mainly for pure protection contracts and PPI. So we now have a three-tier approach: the high-level standards and a few detailed rules and guidance applying to all products;additional detailed rules and guidance for pure protection contracts and PPI; and a few additional rules and guidance just for PPI. The overall standards are the same, but you now have greater flexibility on how you meet them. So, for example, you must still treat customers fairly and give them clear, fair and not misleading information, but we don’t say exactly how you
