Collinson Latitude comments on FSA amendments to rules around packaged bank accounts

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Collinson Latitude, part of the Collinson Group, a market-leader in supplying insurance products to banks, has comments on the changes around packaged bank accounts.

“Benefit providers and banks must work together to ensure that packaged bank account products appeal to all customer segments." Rob Graham, Collinson Latitude.

Yesterday the FSA announced a change on the rules for the sale of insurance within packaged bank accounts, intended to clarify the rules around selling insurance as part of a packaged bank account, and the need for ensuring suitability before a product is sold.

Collinson Latitude, part of the Collinson Group, a market-leader in supplying insurance products to banks, (as well as in creating the back office systems that support packaged bank accounts), has made the following comment on the changes:

Rob Graham, financial services specialist at Collinson Latitude said: “We welcome the FSA’s new rules, which provide much-needed extra clarity to those who are buying travel insurance as part of a packaged bank account.”

“Packaged accounts provide a cost-effective bundled set of products for the consumer, and the best accounts allow the consumer to select or ‘tailor’ the products according to their needs. The new regulation makes it mandatory for banks to inform customers in an annual eligibility statement where their age excludes them from travel insurance taken as part of a packaged account. While this offers packaged account holders greater transparency, the introduction of personalised content for account holders concerning their eligibility may present challenges. For instance, banking systems holding customers’ ages will now need to be linked to the insurance policy terms in the AVA packages being offered to a broad customer base.”

“Benefit providers and banks must work together to ensure that packaged bank account products appeal to all customer segments. Tailoring content and communications to customers, and enabling clients to do likewise, is key to this. This is something that we, at Collinson Latitude champion in the packaged account systems and products that we supply to banks.”

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Victoria Sisson
FWD PR
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