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The Financial Conduct Authority Handbook (FCA Handbook) includes sourcebooks to regulate the Conduct of business by a regulated firm relevant to insurers: the Conduct of Business Sourcebook (COBS) and the Insurance Conduct of Business Sourcebook (ICOBS). This Practice Note considers how these sourcebooks apply to insurers.

COBS and ICOBS set out the 'conduct' aspects of how insurers and insurance intermediaries should operate their insurance business (from sales through to claims) and specifically how they should treat policyholders fairly.

COBS will apply to a firm if its activities consist of long-term insurance business in relation to life policies or designated investment business. ICOBS will apply to a firm in relation to its general insurance business and pure protection insurance business (also referred to as ‘non-investment insurance’). Both ICOBS and COBS state that the rulebooks apply to a firm which carries on business from an establishment maintained by it or its appointed representative in the UK.

Where an insurance product falls to be dealt with by both sourcebooks, general market practice is to apply the more stringent COBS