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Product Oversight and Governance

The Insurance Distribution Directive (IDD) and FCA PROD 4 rules require Product Manufacturers to share information about the intended target market for their products with their Distributors.

To comply with their obligations Product Manufacturers have produced documents to clarify who the products have been designed for, who they are not intended to support and how they expect the product will be offered to customers.

Nelson Policies at Lloyd’s (Nelson Policies) is a Distributor and is providing these documents on behalf of the Product Manufacturers. These are intended for brokers only and should not be included within the suite of documentation provided to the Insured. It does not replace any cover summaries or IPIDs that you already send.

Please continue to refer to the relevant policy documentation for full details of the insurance cover and exclusions.

Please select the correct document below:

Fair Value

Nelson Policies has aligned its distribution strategy to the target market identified by the Product Manufacturer and will continue to make sure that our strategy is consistent with the aim of providing fair value to the customer

Above all, we want to be confident that we only distribute insurance products which provide value and fair outcomes to the customers who purchase them

To assess whether our distribution arrangements result in fair value to customers we consider the following factors:

  • the impact that our distribution arrangements have on the overall value of the insurance product, particularly the remuneration that we and other parties in the distribution chain receive
  • the benefits the product is intended to provide to the customer
  • the characteristics, objectives, interests and needs of the target market
  • the interaction between the price paid by the customer and the extent and quality of any services we and the brokers we use to distribute the product provide
  • whether any remuneration we receive in relation to the insurance product would result in the product ceasing to provide fair value to the customer
  • any potential detrimental effect on the intended value where the insurance product is to be distributed as part of a package with, or as part of the same agreement which provides, another product or service and
  • any potential detrimental effect on value where the customer is also offered retail premium finance

Nelson Policies maintains a Product Review Record which lists each product we distribute, the name(s) of the product manufacturer(s), the identified target market as specified by the manufacturer, and the frequency our distribution strategy for each product is reviewed.