Property Owners Package
FAIR VALUE ASSE SSM EN T
Introductory statement FCA Product Intervention and Product Governance Sourcebook rules (“PROD”) require product manufacturers such as NIG to conduct a product review at least annually to ensure that the product remains consistent with the needs of the identified target market with an appropriate distribution strategy and to communicate the outcome with distributors. Our approach to Product Oversight and Governance Rules can be found here. This Fair Value Assessment document should be read in conjunction with our Target Market Statement and other materials on nig.com to ensure the product is appropriate.
Conclusion of our fair value assessment Last fair value assessment outcome
The product is providing fair value for target market customers
Last fair value assessment
April 2022
Yes
How we assessed fair value In conducting our assessment of both financial and non-financial fair value, we considered the below measures. We are unable to share the actual detail in the assessment as these are documents that contain confidential information.
Category
Information used in assessment
Target market & distribution
• Review of the Target Market Statement • Whether the product is attracting and meeting the needs of the target market • Whether the product is likely to meet those needs for a reasonably foreseeable period, and what that period is • Any impact on vulnerable customers • Any complaints to media or ASA • Appropriateness of distribution channels and remuneration • Impact of distributor remuneration on fair value
Product design & construction
• Loss ratios against thresholds internally set for fair value (with trends) • Performance of any in market propositions • Product changes since last review • Product changes proposed in the coming period • Regulatory or legal incidents • Performance of the main product • Performance of any add ons or cover extensions • Pricing conduct, controls and principles adhered to • Any fees and charges applied by NIG
Market assessment & competitor landscape
• Secondary or primary research on competitor products
Customer journeys – overall
• Changes to journeys and processes and impact those have had
• Defaqto and similar reports, where available • Feedback from consultants • Feedback from distributors • Call abandonment rates • Quality assurance