FCA issues guidance to brokers on insurer due diligence
Regulator planning further work to check brokers are taking appropriate action.
The Financial Conduct Authority (FCA) has reminded brokers that they must be able to demonstrate they have carefully considered the insurers they place their customers’ business with.
In a guidance notice dated 21 August it said: “Suitable due diligence is a key part of the process that we expect insurance brokers to perform on the insurance companies they use.
“Our main concern is the risk to customers in the event the insurer fails and are unable to pay claims.”
Failures
The document fell
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