ICOBS Insurance: Conduct of Business sourcebook

The Insurance Conduct of Business Sourcebook (ICOBS) is perhaps the widest ranging of the various FCA sourcebooks and the one which has perhaps most impact on day-to-day operations. It covers a number of major topics and processes relating to the selling and administering of Insurance.

The ICOBS rules differentiate between “Protection Products” (term assurance, critical illness, income protection and payment protection) and “General Insurance Products” (products which are not protection products including motor, household and PMI). “Protection Products” are classed as “higher risk” products and there are some additional rules to safeguard consumers.

The ICOBS rules have been summarised in the sections below.

3.1 General rules
3.2 Marketing and Financial Promotion
3.3 Compliant sales process (e.g., collecting information, providing advice and concluding the contract)
3.4 Product/Service Specific Rules
3.5 Post new business and ongoing servicing
3.6 Other relevant legislation and codes of practice which impact on the Insurance Sales Process including Contract Certainty, OFT Guidelines on the sale of Payment Protection insurance, Consumer Insurance Disclosure and Representations Act 2012 (CIDRA), The Insurance Act 2015, Private Motor Insurance Order 2015 (Protected NCD).

The format will be to document the rules applying to all/general insurance products initially, followed by additional rules for “protection products”.

Where there are specific rules for certain types of business a summary will be provided in the appropriate section with further information provided in Product/Service Specific Rules.

The manual includes new rules pertaining to General Insurance Pricing Practices. Some of these rules will not be implemented until January 2022. Where this is the case, the date they become effective from is provided.

Where appropriate, more detailed guidance is set out in Appendices.

The Templates section provides practical examples of how the key ICOBS Rules and Guidance can be implemented and monitored.