ICOB 5.2 Information - responsibilities of insurers and intermediaries
This section covers the responsibility for content, production and provision to the customer of information. It provides first for the typical situation in which both insurer and insurance intermediary are UK-based, and also provides for cross-border situations and those in which insurance undertakings or intermediaries are not firms or where the sale involves a connected contract.
If both the insurer and the insurance intermediary are UK-based
If an insurer and an insurance intermediary (other than an authorised professional firm carrying on non-mainstream regulated activities or a firm selling connected contracts) each operates from an establishment maintained by it in the United Kingdom, the insurer is responsible for the content and production of the information referred to at ICOB 5.2.9 R and the insurance intermediary is responsible for providing that information to the customer.
If either the insurance undertaking or the insurance intermediary is not UK-based, not authorised, an authorised professional firm or a firm selling connected contracts
- (1)
If an insurance intermediary operates from an establishment maintained by it in the United Kingdom, but an insurance undertaking does not, the insurance intermediary is responsible for the content and production of the information in ICOB 5.2.9 R as well as for providing it to the customer.
- (2)
Unless (3) applies, if an insurer operates from an establishment maintained by it in the United Kingdom but the intermediary does not, is not authorised, is a firm selling connected contracts, or is an authorised professional firm carrying on non-mainstream regulated activities, the insurer is responsible for the provision of the information in ICOB 5.2.9 R to the customer, where the non-investment insurance contract relates to a customer habitually resident in the EEA, subject to ICOB 5.2.5 R, as well as for the content and production of it.1
- (3)
If an insurer operates from an establishment maintained by it in the United Kingdom, but the intermediary does not, and the customer is habitually resident outside the EEA, ICOB 5 does not apply to the insurer.1
- (1)
ICOB 5.2.3 R(2) makes the insurer responsible for the content, production and provision of information to customers dealing through:1
- (a)
intermediaries in the United Kingdom who do not have Part IV permission (for example, travel agents selling connected contracts, exempt professional firms and intermediaries who do not have an establishment in the United Kingdom); or1
- (b)
firms selling connected contracts; or1
- (c)
authorised professional firms carrying on non-mainstream regulated activities.1
- (a)
- (2)
The insurer is not responsible for the content, production or provision of information to customers outside the EEA unless the insurer is acting as the insurance intermediary in contact with the customer.1
Exceptions where insurers deal with certain other intermediaries
If an insurer deals with an intermediary who operates from an establishment in the United Kingdom but does not need to be authorised, who is a firm selling connected contracts, or who is an authorised professional firm carrying on non-mainstream regulated activities, despite ICOB 5.2.3 R(2) the insurer need not produce or provide:1
- (1)
a policy summary; and1
- (2)
in respect of a distance sale, the directive-required information at ICOB 5.5.20 R(16) to (21).1
If ICOB 5.2.3 R requires an insurer to provide information to the customer, the rules at ICOB 5.3 and ICOB 5.4, where they refer to an insurance intermediary, must be read as applying to an insurer.
Insurers not operating from establishments in the United Kingdom
Where an insurer is not operating from an establishment maintained by it in the United Kingdom, and there is no insurance intermediary which operates from an establishment maintained by it in the United Kingdom, the insurer need produce and provide only the directive-required information at ICOB 5.5.20 R(1) to (15) when ICOB 1.3.4 R or ICOB 1.3.5 R applies.
If an insurer does not operate from an establishment in the United Kingdom and deals with an insurance intermediary which does not have an establishment in the United Kingdom, and ICOB 1.3.4 R or ICOB 1.3.5 R applies, the insurer is responsible for the content and must produce and provide the information required by those rules.
Information to be provided to customers
The information which is required is:
- (1)
a policy summary (ICOB 5.5.1 R to ICOB 5.5.13 G);
- (2)
directive-required information (ICOB 5.5.16 R to ICOB 5.5.26 G);
- (3)
- (4)
information about the claims handling process (ICOB 5.3.9 R to ICOB 5.3.11 G);
- (5)
information, where relevant, about cancellation rights (ICOB 5.3.12 R to ICOB 5.3.14 G); and
- (6)
for any applicable compensation scheme mentioned in the policy summary in accordance with ICOB 5.5.1 R, the extent and level of cover and how further information can be obtained, if not already included in the policy summary in accordance with ICOB 5.5.1 R(2)(b).
The directive-required information referred to in ICOB 5.2.9 R(2) does not need to be in a separate document. It may be incorporated into another document such as the policy document or included in a document of which the policy summary is a part.
If an insurer agrees with an insurance intermediary that it will take on any part of the insurance intermediary's responsibilities required by this chapter, then the relevant rule will apply to the insurer as if it were the insurance intermediary.
1An insurer may agree with an insurance intermediary that the insurance intermediary will be responsible for producing and providing to the retail customer the price and payment information referred to in ICOB 5.5.20 R (17) (b) to (f).
If an insurance intermediary is required by this chapter to provide information to a customer in relation to a non-investment insurance contract, the insurer must produce that information in good time to enable the insurance intermediary to comply with the rules in this chapter, or must produce it promptly in response to a request by the insurance intermediary.
Provision of information to customers "in good time"
Some of the rules in this chapter require information to be provided to retail customers "in good time" before the conclusion of a contract and to commercial customers "in good time" before expiry of an existing contract. In determining what is "in good time" an insurance intermediary should consider the importance of the information to the customer in helping him to decide whether a contract meets his needs and the point in the sales process or renewal process at which the information may be most useful.
If the rules in this chapter require a policy document to be given to a customer before conclusion of the contract, this must be the policy document and not a specimen. If an insurance intermediary provides a copy of the policy terms to a customer for information before conclusion of the contract, in circumstances where the rules in this chapter do not require it, a specimen of the terms can be given to the customer.