ICOBS 6.1 General

1An insurer is responsible for producing, and an insurance intermediary for providing to a customer, the information required by this chapter and by the distance communication rules (see ICOBS 3.1). However, an insurer is responsible for providing information required on mid-term changes, and an insurance intermediary is responsible for producing price information if it agrees this with an insurer.

If there is no insurance intermediary, the insurer is responsible for producing and providing the information.

An insurer must produce information in good time to enable the insurance intermediary to comply with the rules in this chapter, or promptly on an insurance intermediary's request.

These general rules on the responsibilities of insurers and insurance intermediaries are modified by ICOBS 6 Annex 1 if one of the firms is not based in the United Kingdom, and in certain other situations.

A firm must take reasonable steps to ensure a customer is given appropriate information about a policy in good time and in a comprehensible form so that the customer can make an informed decision about the arrangements proposed.

1. (1)

   4This rule applies when a firm proposes to a consumer the renewal of a general insurance contract, which is not a group policy, and which has a duration of 10 months or more.

2. (2)

   In this rule, ‘renewal’ means carrying forward a policy, at the point of expiry and as a successive or separate operation of the same nature and duration as the policy, with the same insurance intermediary or the same insurer.

3. (3)

   The firm must provide to the consumer the following information in good time before the renewal:

   1. (a)

      the premium to be paid by the consumer on renewal;

   2. (b)

      in a way that is consistent with the presentation of (a) so that they can be easily compared:

      1. (i)

         except where (ii) applies, the premium for the policy which the firm proposes to renew, as set out at the inception of that policy;

      2. (ii)

         where one or more mid-term changes were made to the policy which the firm proposes to renew, an amount calculated by annualising (or otherwise adjusting as appropriate to the duration of the proposed policy) the premium in effect following the most recent mid-term change, excluding all fees or charges associated with those mid-term changes;

   3. (c)

      a statement alongside (a) and (b) indicating that the consumer:

      1. (i)

         should check that the level of cover offered by the renewal is appropriate for their needs; and

      2. (ii)

         is able, if they so wish, to compare the prices and levels of cover offered by alternative providers.

4. (4)

   Where the proposed renewal will be the fourth or subsequent renewal the consumer has entered into in respect of the policy, the firm must include the following statement, to appear alongside the matters required by (3)(a), (b) and (c)(i) (but omitting (c)(ii)): “You have been with us a number of years. You may be able to get the insurance cover you want at a better price if you shop around.”

5. (5)

   The firm must communicate the information in (3) and (4):

   1. (a)

      clearly and accurately;

   2. (b)

      in writing or another durable medium; and

   3. (c)

      in a way that is accessible and which draws the consumer’s attention to it as key information.

1. (1)

   If a policy is bought by a consumer in connection with other goods or services a firm must, before conclusion of the contract, disclose its premium separately from any other prices and whether buying the policy is compulsory.

2. (2)

   In the case of a distance contract, disclosure of whether buying the policy is compulsory may be made in accordance with the timing requirements under the distance communication rules (see ICOBS 3.1.8 R, ICOBS 3.1.14 R and ICOBS 3.1.15 R).

3. (3)

   2This rule does not apply to policies bought in connection with other goods or services provided as part of a packaged bank account.

Where a rule in this chapter requires information to be provided in writing or another durable medium before conclusion of a contract, a firm may instead provide that information in accordance with the distance communication timing requirements (see ICOBS 3.1.14 R and ICOBS 3.1.15 R).