Information as at: September 2024
The Financial Conduct Authority (FCA), in its Policy Statement (PS21/5) introduced new rules on general insurance pricing practices and product governance.
Gallagher strongly supports any initiative designed to improve outcomes for policyholders. We have in place an established framework of periodic product assessments, using factual indicators to assess risk and value.
New rules came into effect on 1 October 2021 and 1 January 2022. As an FCA-authorised firm, you will be familiar with these requirements (in particular those affecting your sales processes and if you act as a price-setting intermediary). We explain here how Gallagher intends to fulfil the requirements which fall on product manufacturers in respect of product value.
On this page, we provide guidance and resources to help support those firms that are distributing our products. In particular, you will find Target Market Statements to help you understand the intended sales population, and Fair Value Assessments so that you understand the work Gallagher has carried out to assess the value of our products.
Fair Value Assessments
For a limited number of our products, we have identified that we are the manufacturer. For these products, we have completed Fair Value Assessments, in order to provide assurance that our products continue to offer value for money to the intended customers, that they perform as the policyholder expects, and that there are no risks of dilution of this value.
These assessments include consideration of product information such as the nature of the product, coverage and exclusions, the target market, the way we price the product (including the remuneration paid to Gallagher and other distributors, in particular given the services provided), the potential value of the product over a reasonably foreseeable period, and any indicators that suggest the product may not be providing value to customers (including complaints, claims, and sales).
We have completed the following Fair Value Assessments*. Whilst we have not published the detailed work, for your information we have summarised the work we have carried out and the high level conclusions we have drawn:
- Definitive Crime — Financial Lines
- Definitive D&O — Financial Lines
- RYA Yacht Club Combined
- Holiday Home
- Motor Trade Combined
- Affinity Partners — Household
- Buy to Let
- Combined Liability for Oil & Gas Contractors
- Commercial Combined — Charities
- Courier Motor — Goods in Transit
- Courier Motor — Single Vehicle
- Courier Motor Fleet
- Gallagher Household
- Gallagher Blocks of Flats
- Instasure — UK Property Owners (Block & Landlord)
- Instasure — UK Household
- Intasure — Overseas Holiday Homes
- Intasure — Overseas Leisure Homes Static
- Intasure — UK Holiday Homes
- Intasure — UK Park Static
- Just Landlord — Unoccupied Property
- Just Landlords — Holiday Home
- Just Landlords — Residential Let
- Leisure — Holiday Lets (Single and Complex)
- Leisure — IPO & Residential Park Home
- Leisure — Commercial Combined
- Leisure Park Owned Property Stock
- Lifestyle & Lifestyle Plus — HNW Property & Household
- Property Owners
- Residential Let
- RYA Coaches Indemnity
- Sunseeker Shield — Marine Vessel — Yacht Insurance
- Vasek — Commercial Let Property
- Vasek — Holiday Home
- Vasek — Home Insurance
- Vasek — Mid Net Worth
- Vasek — Residential Let Property
- Vasek — Unoccupied Properties
- Vasek — Block of Flats
- Vasek Unoccupied Direct
*We will be adding fair value summary assessments to this page as we complete them.
Target Market Statements
Where we are product manufacturers or hold product manufacturing responsibilities, we are required to supply information about the intended target markets for Gallagher products. We have produced a series of Target Market Statements relating to our product groups, which can be found below.
Please note that our Target Market Statements are only intended to provide an indicative summary of the target market for a product, and are not intended to be a detailed summary of coverage. They are not intended to be shared with policyholders. Please refer to the relevant policy documentation for full details of the coverage provided.
We have completed the following Target Market Statements.
- Combined Liability for Oil and Gas contractors — Liability
- RYA Yacht Club Combined
- Courier Motor — Fleet
- Courier Motor — Single Vehicle
- Courier Motor — Goods in Transit
- Motor Trade Combined
- Property Owners
- Buy To Let
- Commercial Combined — Charities
- RYA Coaches Indemnity
- Definitive Crime — Financial Lines
- Definitive D&O — Financial Lines
- Sunseeker Shield — Marine Vessel — Yacht Insurance
- Gallagher Blocks of Flats
- Intasure — Overseas Holiday Homes
- Intasure — Overseas Leisure Homes — Static
- Intasure — UK Holiday Homes
- Instasure — UK Household
- Instasure — UK Property Owners (Block & Landlord)
- Intasure —UK Park Static
- Vasek — Block of Flats
- Vasek — Mid Net Worth
- Vasek — home Insurance
- Vasek Unoccupied Direct
- Vasek — Residential Let
- Vasek— Unoccupied Properties
- Vasek — Commercial Let Property
- Vasek —Holiday Home
- Just Landlords — Holiday Home
- Just Landlords — Landlords — Residential Let
- Just Landlord — Unoccupied Property
- Leisure — Holiday Lets (Single and Complex)
- Leisure—Commercial Combined
- Leisure — IPO & Residential Park Home
- Leisure Park Owned Property Stock
- Holiday Home
- Lifestyle & Lifestyle Plus — HNW Property & Household
- Residential Let
- Affinity Partners — Household
- Gallagher Household
These materials are in place to ensure that our products are being distributed correctly, and provide fair value to customers as intended. For further enquiries please contact us.