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You are viewing the version of the document as on 2023-12-07.

ICOBS 6B.1 Application and purpose




1This chapter applies where a firm carries out any of the following activities in relation to a home insurance or motor insurance policy or any related additional product sold to a consumer:

  1. (1)

    setting the renewal price; or

  2. (2)

    setting the price for any additional product offered to the customer at renewal; or

  3. (3)

    determining the level of remuneration, including in particular any fees earned by the firm when distributing a product at renewal.

ICOBS 6B.1.2 R

1This chapter also applies where a home insurance or motor insurance policy is sold on a subscription basis and at any point during the lifetime of the policy, the firm increases the price of the policy.


2This chapter also applies where:

  1. (1)

    a firm carries out insurance distribution activities at renewal; and

  2. (2)

    the firm either:

    1. (a)

      forgoes commission in whole or in part when selling to a new business customer; or

    2. (b)

      offers cash or cash-equivalent incentives within the meaning of ICOBS 6B.2.12R to new business customers.



1This chapter does not apply to group policies where these include, or are sold alongside, home insurance or motor insurance products.



1The rules in this chapter:

  1. (1)

    promote competition through ensuring consumers have a realistic picture of the long-term cost of their chosen product when purchasing it and incentivising firms to compete for consumer business on this basis; and

  2. (2)

    protect consumers through ensuring that they are placed in a position where they can understand the long-term cost of their product.


1The rules in this chapter are not intended to affect how risk is priced for home insurance and motor insurance.