The Association of British Insurers (ABI) has published a financial promotions resource pack for providers to help them ensure their marketing and publicity material for life and pensions products is clear, fair and not misleading.
Chris Kenny, the ABI’s director of life and pensions, says: “The ABI resource pack is a key component of our own 5-point Action Programme to boost consumer confidence in long-term savings.”
The pack is the result of a consultation process with insurers, the Financial Services Authority (FSA) and consumer organisations and is designed to work in conjunction with the FSA’s Treating Customers Fairly (TCF) agenda, says Kenny.
The pack contains information on risk assessment, outlining a series of considerations firms may wish to take into account before and during the financial promotions process. It says firms need to think about the risks inherent in the product they are promoting and what difference the context of the promotion will make to how consumers interpret it.
The section Good practice on processes and measures is intended to help firms identify the types of mechanisms they may like to consider employing in their financial promotions processes and is designed to help improve standards.
The pack also contains good practice guidance for with-profits, structured products and equity release promotional literature, which advises what information firms should consider when promoting these areas to ensure that a balanced picture of the product is given.
Kenny says: “Product promotion is a key driver of competition in the insurance market and helps to keep prices down and product quality up. It is equally important, though, that such advertising is clear, fair and not misleading, helping consumers to make a rational and well-informed choice about which products to buy.”
He adds: “The ABI resource pack is a practical tool to help firms in their financial promotions activities and is clear evidence of the industry’s commitment to improving standards.”
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