The Financial Conduct Authority (FCA), in its Policy Statement (PS21/5), introduced new rules on general insurance pricing practices and product governance.

Gallagher Specialty strongly supports any initiative designed to improve outcomes for policyholders. We have in place an established framework of periodic product assessments, using factual indicators to assess risk and value.

New rules came into effect on 1 October 2021 and 1 January 2022. As an FCA-authorised firm, you will be familiar with these requirements (in particular those affecting your sales processes and if you act as a price-setting intermediary). We explain below how Gallagher Specialty intends to fulfil the requirements that fall on product manufacturers in respect of product value.

On this page, we provide guidance and resources to help support firms that are distributing our products. In particular, you'll find target market statements to help you understand the intended sales population, and fair value assessments so that you understand the work Gallagher has carried out to assess the value of our products.

Fair value assessments

For a limited number of our products, we have identified that we're the manufacturer. For these products, we have completed fair value assessments, to provide assurance that our products continue to offer value for money to the intended customers, that they perform as the policyholder expects, and that there are no risks of dilution of this value.

These assessments include consideration of product information such as the nature of the product; coverage and exclusions; the target market; the way we price the product (including the remuneration paid to Gallagher Specialty and other distributors, in particular given the services provided); the potential value of the product over a reasonably foreseeable period; and any indicators that suggest the product may not be providing value to customers (including complaints, claims, and sales).

We have completed the following Fair Value Assessments.* Whilst we have not published the detailed work, for your information we have summarised the work we have carried out and the high-level conclusions we have drawn: 

*We will be adding fair value summary assessments to this page as we complete them.

Target market statements

Where we are product manufacturers or hold product manufacturing responsibilities, we're required to supply information about the intended target markets for Gallagher Specialty products. We have produced a series of target market statements relating to our product groups, which can be found below.

Please note that our target market statements are only intended to provide an indicative summary of the target market for a product and aren't intended to be a detailed summary of coverage. They aren't intended to be shared with policyholders. Please refer to the relevant policy documentation for full details of the coverage provided.

We have completed the following target market statements:

These materials help Gallagher Specialty ensure that our products are being distributed correctly and provide fair value to customers as intended. For further enquiries, please contact us.

Note: The above statement does not include Gallagher Benefit Services Holdings Limited UK,  click here for their statement.