A Fair Value Assessment is a crucial process we undertake to ensure that our products and services consistently deliver genuine value to the end customers. This ongoing evaluation checks whether the pricing and benefits of our offerings are aligned with what the end customers expect and deserve. The assessment covers several key areas including:
- Cost and Pricing: We analyse whether the pricing of our products (including charges and fees) is fair and appropriate given the benefits they offer, ensuring the end customers receive value for their money
- Distribution channels: We carefully select distribution channels that are appropriate for the target market, thereby considering the characteristics of the relevant insurance products
- Complaints data
- Broker feedback
- Product testing
- Claims information, including loss ratios
- Public information or information obtainable from external sources including analysis of similar insurance products available from other firms and, where relevant, data published as part of the FCA’s work on value measures in the general insurance market
- The costs of any services provided in connection with the insurance product by any another person involved in the distribution arrangements
These assessments are a fundamental part of our Product Governance framework, ensuring that our products remain relevant, competitive, and, most importantly, beneficial to the end customers. This approach also ensures compliance with the latest Financial Conduct Authority (FCA) guidelines under the Consumer Duty.
The following is excluded from the review and as a distributor you must consider:
- Any ancillary or additional products sold alongside the product (not obtained via VIUK) which may affect the value of the product or duplicate cover provided by the product.
