Fair Value Intermediary statement

Find out more about what we're doing

The FCA’s Product Governance Sourcebook (PROD) require Product Manufacturers to have appropriate policies and procedures in place to comply with PROD 4.5 and demonstrate all relevant products offer continuing fair value to customers.

To help our Intermediary partners in meeting the requirements, you can find the following details on our website for all our intermediary product range:

You can view the FCA policy statement by going to General insurance pricing practices - policy statement

What do we do? 

LV= GI Intermediaries carries out Ongoing Value Assessments (OVA’s) at least once a year for each product. These reviews sit within a formal governance and reporting structure to ensure input and visibility for all key stakeholders. 

Fair value assessments are also undertaken where a proposed pricing or underwriting change triggers the need for a review. If a proposed product development or a pricing proposal doesn’t offer fair value, it won’t be approved.

If at any point a product is identified as not offering fair value, action will be taken to improve the value and rectify the situation. This will be managed following our Risk Management Framework. 

How do we assess product value?

Ongoing Value Assessments (OVA’s) consider a range of qualitative and quantitative measures and metrics, including:

FCA Value Measures:

  • Premium
  • Number of Claims
  • Claims Frequency
  • Claims Acceptance Rates
  • Total and Average claims pay-out
  • Number of Complaints
  • Complaints as a % of claims

Measures designed to monitor if the needs of the Target Market are being met, including:

  • Cancellation (including within the cooling off period)
  • Claims Decline reason
  • Complaints Root Cause Analysis 

Features of the Product, including:

  • Terms and Conditions which may cause or give rise to concern
  • Product Testing findings (including consumer insight)
  • Costs 
  • Product Fees and Charges
  • Commission *

* Product assessments of fair value will include the standard commission applied (or for Net Rated brokers, reasonable industry standard commission) and allow for reasonable (industry standard) fees for its distribution, for which you’re responsible. If you have any concerns as to whether the level of your fees and/or commission adversely impacts the value of the product, please contact us.

Our Fair Value Assessments Outcomes

Further detail on the value assessment outcome can be found in the Fair Value Documents for each product.

Product Name
Full Value Assessment Completed
 Value Assessment Outcome Immediate Actions Required for Product
LV= Gold Home Insurance (IFA) September 2023  Y - Provides Value   No
LV= Platinum Home Insurance (IFA) September 2023 Y - Provides Value   No
LV= Landlords Insurance (IFA) September 2023 Y - Provides Value   No

 We’re here to help

If you have any questions, please don’t hesitate to speak to your Account Manager who’ll be able to help.