Fair Value Assessments (FVA)

In accordance with Financial Conduct Authority (FCA) Policy Statement (PS21/5), ARAG completes Fair Value Assessments (FVAs) for all core products on a regular basis. Such reviews will be undertaken every 12 months or more frequently where the potential risk associated with the product makes it appropriate to do so.

In assessing whether core products continue to offer fair value to the intended customers for a reasonably foreseeable period, these assessments include consideration of factors relevant to the product, including:

• the nature of the product, coverage and exclusions
• the target market and distribution channels
• the way we price the product (including the remuneration paid to distributors)
• commission and margin levels - to ensure these are appropriate for the service received by the customer
• Claims acceptance ratios
• Complaints - analysis of customer complaints to identify and resolve root causes, particularly where the product fails to deliver as expected
• Service delivery - to ensure service levels are in line with those we have led customers to expect including any barriers to claiming, or impact on vulnerable customers.
• Communications - to ensure customers continue to receive communications which are clear, transparent and timely
• any relevant external factors such as changes to the applicable legal rules, technological developments, or changes to the market situation that may impact the value provided by the product.

It is important to note that the insurance element is only part of the product. Other services such as access to Helplines and online Legal Documents also need to be considered when looking at the ‘value’ offered by the product.

Note: The FVAs will be updated by the anniversary date of the last review so please do not contact us before then.

The most recent Fair Value Assessments are as follows: