CP17-05/T06 - Conduct of Business Code for Long Term Insurance

We asked for your views on changes that the Authority had made the Insurance (Conduct of Business) (Long Term Business) Code and related guidance, based on feedback to previous exercises, including:

• Timing if implementation;
• Basis for disclosing payments of commission;
• Application of the Code to closed products; and
• Exemptions

Eight life insurers and one trade association provided comments.

Responses generally sought clarity on the more prescriptive elements of the Code and sought the Authority’s views on the application of Guidance published with the consultation.

Concerns were raised by individual firms on the potential impact of disclosure and oversight of intermediaries on their respective business models.

We responded to comments received in a paper published on 14 November 2017. Minor changes were made to the The Insurance (Conduct of Business) (Long Term Business) Code 2018 in line with certain responses and guidance was updated. The Code was implemented on 1 January 2019.