UK:
Striking The Right Balance: Conduct Risk In Wholesale Insurance
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Background
Conduct risk has traditionally been seen only as a concern for
retailers of personal lines insurance. However, the Financial
Conduct Authority has dramatically widened the focus of conduct
risk to cover all firms in the supply chain and all consumers of
general insurance – from personal lines, to commercial lines
including large risks and reinsurance.
This expansion in scope has brought many more firms, lines of
business and products into the focus of conduct risk. This includes
firms – both brokers and underwriters – operating in
the Lloyd's and London market.
Key findings
With limited focus on conduct risk until now, many firms in
wholesale insurance markets have little precedent or guidance on
how to appropriately deal with the challenging 'grey areas'
when addressing conduct risk.
There is a real danger that firms address conduct risk
disproportionately or without mitigating the actual risk. In this
paper we explore these risks and offer an approach that firms can
use to identify and mitigate conduct risk to drive commercial
success.
Download
Striking the right balance: A proportionate
approach to conduct risk in wholesale insurance markets
(PDF)
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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