Product Governance.

Introduction

This below information outlines our commitment and approach to Product Oversight and Governance and contains the target market statements and fair value assessment outcomes for each of our product(s).

Product Target Market Statements and Fair Value Assessments Download

Casus Target Market Statements and Fair Value Assessments can be accessed by using the link below. These documents are exclusively available to Intermediaries or Brokers with an active agency with Casus. To access them, you will need a username and password. If you do not have these credentials, please reach out to a member of our team at 01702 599 100.

Casus Key Objectives

At Casus, our mission to delivering products that embody fair value and uphold the highest standards of reputation and conduct goes beyond our legal and regulatory obligations—it is intrinsic to our core values and unwavering commitment to ethical practices and customer-centricity.

Our strategy is underpinned by our Product Oversight and Governance framework which entails rigorous controls at every stage of our insurance product(s) lifecycle. From initial design and review to approval and distribution, we strive to uphold the integrity and value of our offerings. Our key objectives include:

Providing customers with products and services that provide fair value and prioritise the long-term interests of our customers, ensuring their financial security and peace of mind.
Maintaining compliance with regulatory and legislative requirements to uphold industry standards and protect the rights of our customers.
Developing innovative, competitive, and sustainable products that meet the dynamic needs of our customers and contribute to their financial well-being.

We take pride in our commitment to delivering insurance solutions that genuinely benefit our customers, aligning with their needs and ensuring their peace of mind. By adhering to legal and regulatory requirements, we aim not only to fulfil our obligations but also demonstrate our sincere desire to act with integrity and transparency in all our dealings, prioritising the best interests of our customers.

Broker Obligations

To ensure regulatory compliance, Casus brokers must adhere to and continue to meet their regulatory obligations, particularly:

Distribution Assessment:

Conduct a thorough distribution assessment for all products in accordance with PROD 4.3.10. This assessment should carefully consider the impact of remuneration on fair value, ensuring that it aligns with regulatory standards.

Remuneration Alignment:

Verify that received remuneration does not conflict with the obligation to act in the customer’s best interest. Remuneration should also be consistent with general regulatory requirements (including SYSC 19F.2) and fair value guidelines (PROD 4.3.6A).

Disclosure Standards:

Maintain transparency by appropriately disclosing remuneration as required by ICOBs 4.3. This includes providing clear and comprehensive information to customers regarding any remuneration received.

Service-Remuneration Relationship:

Ensure that remuneration received correlates reasonably with the services provided to the customer. This ensures fairness and equity in the distribution process.

Conflicts Management:

Implement and uphold an effective conflicts of interest control framework (SYSC 10.1) to address and mitigate any potential conflicts that may arise in the distribution of products.

Target Market Statements

Additionally, Casus brokers must sell our product(s) in accordance with the target market statements provided by Casus Underwriting.

Remuneration and Distribution Arrangements

As a Managing General Agent (MGA), Casus Underwriting Ltd functions as both a Co-Manufacturer and Distributor for its offered products, these products are exclusively distributed through our approved network of regulated UK insurance brokers and intermediaries on a wholesale basis only.

Casus Underwriting Ltd receives its remuneration through commission, administration fees & insurer profit shares. Our remuneration is assessed for each product during the product review and fair value assessment process to ensure it is commensurate with the services provided by Casus and that it does not negatively impact the overall product value. Remuneration through the distribution chain is also assessed periodically and must be commensurate with the intermediary services provided.

In ensuring that our product distribution arrangements uphold fairness and value for customers, we employ a comprehensive approach to distribution arrangements which includes assessment of:

The type and amount of remuneration of each party in the distribution chain including commission, fees and premium finance charges paid by customers.
Details of any additional products sold in conjunction with our products.
Details of the services provided by each party in the distribution chain.
Periodic monitoring of remuneration of distributors in the distribution chain.
Confirmation from distributors in the chain that the level of remuneration is consistent with their regulatory obligations.
Providing transparent fair value assessments to all parties involved in the distribution process.
Implementing measures to prevent undue influence on product pricing by any distributor within the chain.

Target Market

As an integral part of our product approval process, we meticulously identify the intended audience for our insurance product. This involves understanding the unique requirements and preferences of the target market to shape the development of the product accordingly. Through our approval process, we transparently outline how the product aligns with the objectives, interests, and characteristics of the target market, ensuring the delivery of fair value.

Brokers must sell our product(s) in accordance with Casus Underwriting Target Market Statements.

Fair Value Assessment

Central to our product approval process is Fair Value Assessment (FVA), which rigorously evaluates whether our insurance products provide fair value to customers in the target market, both presently and for a reasonably foreseeable period. This assessment considers various factors, including:

Evaluating the insurance product and understanding its complexity.
Analysing the inherent risks associated with the insurance product and assessing the potential for customer detriment.
Understanding the characteristics of the target market.
Identifying the benefits offered by the insurance product to ensure they align with customer needs.
Assessing the type and quality of services provided to customers to enhance their overall experience.
Reviewing the distribution arrangements and considering remuneration information involved.
Examining the elements comprising the total price to ensure transparency and affordability.
Utilising appropriate data, including claims information, complaints data, sales, and post sales performances to inform the assessment.
Conducting an analysis of comparable insurance products within the market to gauge competitiveness and value proposition.

Through our meticulous Fair Value Assessment process, we aim to ensure that each insurance product not only meets regulatory standards but also exceeds customer expectations, providing genuine value and peace of mind.

Fair Value Assessment Outcome

We share the Fair Value Assessment (FVA) outputs received from our insurers with our distributors. These outputs include comprehensive information essential for distributors to grasp the results of the assessment, encompassing:

Key features of the product.
Identification of the intended target market.
Customer segments for whom the product might not be appropriate.
Any supplementary information essential for distributors’ understanding.

For further details on each product, please refer to the respective Insurance Product Information Document (IPID) or summary of cover. For complete terms and conditions, consult the relevant Policy Wording.

Quality Assurance

Ensuring the quality of our insurance products is a top priority at Casus, and our quality assurance procedures play a crucial role in achieving excellence. These procedures focus on the following key areas:

Staff Competency

We prioritise the continuous development and assessment of our staff’s skills, knowledge, and expertise in designing and manufacturing products. This ensures that our team members possess the necessary capabilities to meet the needs of our customers and align with our business goals.

Product Testing:

To ensure the quality and reliability of our insurance products, we adhere to a rigorous testing process. The frequency of these tests is tailored to the complexity of each product. Typically, we conduct annual assessments, with additional evaluations carried out before product launches, significant modifications, or in response to changes in the target market.

Monitoring and Review:

We prioritise ongoing evaluation and oversight to uphold product excellence. Our regular annual assessments ensure compliance with industry standards and regulations. Furthermore, we proactively monitor various factors, including product complexity, customer demographics, and distribution arrangements. Depending on these considerations, we may conduct more frequent reviews to maintain our commitment to customer satisfaction and regulatory adherence.

Approval Process:

Each of our products undergoes thorough review and approval. Product reviews require final sign-off from our Product Overview Group, and when acting as a Co-Manufacturer, the approval process is conducted jointly with insurers, ensuring a collaborative approach to product quality and compliance.

Distributor Arrangements

When Casus operates as a Distributor, the responsibility for conducting a Fair Value Assessment rest with the Manufacturer, who is responsible for conducting and providing the Fair Value Assessment to their respective distributors. In line with the provisions outlined in PROD 4.2.14 P, Casus and its distributors will be required to exchange information to aid Insurers in meeting their regulatory obligations.

While Fair Value Assessments are not within our purview as a distributor, our commitment to Product Oversight and Governance extends to all insurance products, excluding contracts involving large risks and reinsurance. During our product reviews, we prioritise ensuring that the offerings align with the needs and expectations of the Target Market, and that the product has been assessed and deemed by the Manufacturer to provide fair value.

Addressing Breaches and Taking Remedial Actions

Upon identifying any issues or instances of customer detriment during our product reviews, we will promptly take appropriate measures to mitigate the situation and prevent its recurrence. This includes notifying both distributors and customers of any remedial actions undertaken. Similarly, if issues arise from our monitoring of distributors, we take immediate steps to address and remedy the situation. In cases of significant customer detriment, we may temporarily suspend distribution of the product until the issue is fully resolved.