At Glance Review of REP021e RMAR (RegData) return for premium finance, add-ons and fees.
Whilst the reporting will target firms distributing home or motor insurance (including data relating to add-on products, premium finance, etc). There are specific additional questions for insurers and price-setting intermediaries.
The reporting rules come into force on 1 January 2022 with the first reporting being due September 2022 - covering the first half of 2022. Thereafter firms will be subject to ongoing reports for calendar years by 31 March each year.
REP021e General insurance pricing information – Premium finance, add-ons and fee charges can be found in the FCA Handbook under SUP 16 Annex 49A R. The FCA provided associated notes to help firms complete the returns, which can be found under SUP 16 Annex 49B G.
Who should complete the return?
The REP021e form for General Insurance Pricing Information - Premium Finance, Add-Ons, and Fees Charges should be completed by UK-based insurance firms that offer premium finance products, add-ons, and/or impose fees and charges on their insurance policies (aka Price setting intermediaries); thus including general insurance firms, Lloyd's managing agents, and insurance intermediaries, who:
Offer premium finance and the cost of such premium finance is set by them (or influenced)
Offer various add-ons for which they are price-setting intermediaries
Where firms charge fees in addition to the premium
Firms that do not offer either, should still complete the return as ‘nil return’.
The FCA requires firms to complete this form on a quarterly basis, with the reporting period ending on the last day of March, June, September, and December each year. Firms must submit the completed form within 30 business days of the end of the reporting period.
What products are captured in the return?
The REP021e form for General Insurance Pricing Information - Premium Finance, Add-Ons, and Fees Charges requires firms to report on specific products and services that they offer in connection to the Home and Motor business core business. Here's a breakdown of the products and services that should be included in the report:
Premium Finance Products
Firms must provide information on the premium finance products they offer, which may include:
Loans for the payment of insurance premiums
Instalment plans for the payment of insurance premiums
Credit agreements for the payment of insurance premiums
Firms must provide information on any add-ons they offer to their insurance products. Add-ons are additional products or services that can be added to an insurance policy for an extra fee. Some examples of add-ons may include:
Legal expenses cover
Personal accident cover
Guaranteed asset protection (GAP) insurance
Fees and Charges
Firms must provide information on any fees and charges they impose on their customers, which may include:
Late payment fees
It's important to note that firms must ensure that they report on all products and services that fall within the scope of this form, including those that may not be explicitly listed here.
Additionally, firms should refer to the FCA handbook for further guidance on the types of products and services that are included in this form.
If you require assistance with REP021e, don't hesitate to reach out to our compliance consultants.