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FSA Insurers improving customer information

Industry efforts to produce better quality disclosure information for customers have received recognition from the FSA. The regulator has revealed that over two-thirds of financial services Key Features Documents (KFDs) it has reviewed have significant improvements in quality.

Firms must give KFDs to consumers before they buy a packaged product. Packaged products include life investment and personal pension products and most collective investments. All KFDs must include key headings outlining the product, its aims, the investor's commitment, risks, general questions and answers and charges. The FSA first reviewed the standard of KFDs in September 2007 and found only 15% were effective.

Maggie Craig, the ABI's Director of Consumer Strategy, said:

"This excellent performance is a reflection of the hard work the ABI and its members are doing to deliver better, clearer communications for customers. However, we are not complacent and we intend to use the findings of the survey as a springboard to improve customer communications further.

"Following the initial review by the FSA, the ABI has been working closely with the regulator over the past year to help firms improve. We have also produced guidance to help firms review and update their KFDs under our Customer Impact Scheme. This Scheme is designed to improve customer experiences and outcomes."

Last updated 01/07/2016