LMA unveils updated UK Consumer Wordings Guidance

The Lloyd’s Market Association (LMA) has launched its latest iteration of the UK Consumer Wordings Guidance.

According to the announcement, this latest iteration is a comprehensive resource designed to aid LMA members in “effectively and clearly communicating insurance concepts to consumers.”

From what we understand, the updated guidance reflects recent regulatory changes, including the removal of Lloyd’s minimum standards and the introduction of the FCA’s Consumer Duty.

Produced jointly with Browne Jacobson LLP, this new update reportedly ensures that the guidance remains aligned with the latest legislative requirements and industry standards.

The updated guidance includes new sections on testing communications and digital policy layout, along with comprehensive advice on various aspects of consumer communications, prompted by the introduction of the FCA’s Consumer Duty.

As well as this, LMA noted that the launch of the UK Consumer Wordings Guidance aligns with broader initiatives aimed at promoting clearer and more customer-centric insurance documentation.

It is important to note, that LMA has a number of related projects in the pipeline for 2024.

These include an update to the UK Consumer Personal Accident Policy wording (“K form”) and production of a new property and business interruption wording for UK small and medium enterprises (SMEs).

David Powell, Head of Technical Underwriting at the LMA, commented: “The LMA is dedicated to fostering a culture of continuous improvement and innovation. We recognise the importance of clear and transparent communication and want to promote better understanding of policy wordings. We are working to equip our members with the tools and resources they need to improve customer engagement and drive positive change.”

Tim Johnson, Partner at Browne Jacobson LLP, said: “The implementation of the FCA’s Consumer Duty is the latest step in the journey to ensuring that policy wordings are clear and transparent and – crucially – that customers can find the answers to important questions about their cover. It has been a pleasure working with the LMA and other industry stakeholders on the UK Consumer Wordings Guidance, and to share our experience of working with academics and market participants to help insurance customers better understand their products.”

The post LMA unveils updated UK Consumer Wordings Guidance appeared first on ReinsuranceNe.ws.

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