DAS responds to FCA guidance on value measures
Authored by DAS
On the 15th February the FCA published new guidance relating to the reporting of insurance value measures as they relate to Legal Expenses Insurance and Motor Breakdown. The regulator stated that firms will not be required to report against the following measures for these product categories:
- total claims pay out cost
- average claims pay out
- the amount that the top 2% of claim pay outs are above.
DAS UK will be complying with this new guidance and we have written to all our business partners impacted by the change.
We welcome this development from the regulator, and will be interested to see what further developments may come about – specifically in relation to the measurement of value for insurance products where the main benefit provided to a customer is through the delivery of a service rather than financial compensation.
About DAS Group
The DAS UK Group comprises an insurance company (DAS Legal Expenses Insurance Company Ltd), a law firm (DAS Law), and an after the event (ATE) legal expenses division.
DAS UK introduced legal expenses insurance (LEI) in 1975, protecting individuals and businesses against the unforeseen costs involved in a legal dispute. In 2018 it wrote more than seven million policies.
The company offers a range of insurance and assistance add-on products suitable for landlords, homeowners, motorists, groups and business owners, while it’s after the event legal expenses insurance division offers civil litigation, clinical negligence and personal injury products. In 2013, DAS also acquired its own law firm – DAS Law – enabling it to leverage the firm’s expertise to provide its customers with access to legal advice and representation.
DAS UK is part of the ERGO Group, one of Europe’s largest insurance groups (the majority shareholder in ERGO is Munich Re, one of the world’s largest reinsurers).