Financial Services Authority announces total premium disclosure deadline
Thu, 01 Apr 2010
The Financial Services Authority (FSA) has given protection providers and distributors until the end of 2010 to implement its total premium requirement.

By the end of the year, all firms who sell life, critical illness and income protection insurance, as set out in the Insurance Conduct of Business sourcebook (ICOBS), must apply the FSA's rules on total premium disclosure. The FSA's rules come as a result of the Association of British Insurers year-long initiative around the FSA's total premium obligation, a clause in the European Distance Marketing Directive .

Under the regulator's stipulations, firms have three options for disclosing total premiums. The first is a declaration of the total premium over the period of the plan. Alternatively, firms can give illustrations of the amounts that will have been paid after certain milestones within the fixed term of the contract, or during an open-ended contract.

Finally all firms must provide versions of the above options, noting the fact that premiums and benefits are subject to review and explaining that a recalculated disclosure will be sent to the customer if premiums are revised.
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