To whom it may concern,

PRODUCT GOVERNANCE AND PRODUCT FAIR VALUE ASSESSMENT

Cigna Healthcare complies with the product oversight and governance rules, as laid out by EU 2016/97 – the Insurance Distribution Directive, and the Financial Conduct Authority (FCA). This includes the FCA product governance requirements under Consumer Duty set out in Policy Statement PS22/9. The overarching aim of these rules is to provide effective consumer protection, ensuring customers receive fair value from their general insurance and pure protection products.

As a manufacturer of health insurance products, Cigna Healthcare has taken all necessary steps in order to be compliant with the relevant provisions of the FCA Product Intervention and Product Governance Sourcebook (PROD), which implement the obligations from the FCA General Insurance Pricing Practices Policy Statements PS21/5 and the amendments in PS21/11, the Insurance Distribution Directive and, Consumer Duty (referred to collectively as the “Product Governance Rules”).

In response to these Product Governance Rules, Cigna Healthcare has updated its product approval processes and conducted annual product reviews, including a fair value assessment, for each Cigna Healthcare product distributed under its UK and European licenses.

Cigna Healthcare can confirm that each of its products that were reviewed met the fair value requirements based on PROD 4.2.14E of the FCA Rules and the related guidance, and Chapter 2 (Product Governance requirements for manufacturers) of the Insurance Distribution Directive. Whilst Cigna Healthcare is unable to share all the detail of the constituent elements, on the grounds of confidentiality, these annual reviews did include an analysis of claims-related data, loss ratio, benefit utilisation, and a range of other key measures of value.

Where Cigna Healthcare has identified changes needed to our existing products and services to meet the applicable Product Governance Rules and Consumer Duty requirements, Cigna Healthcare has documented how and when we plan to implement these remedies.

Please find the supporting document in the link below which summarises the approach taken to meet the Product Governance Rules and the conclusions reached to help you, our distribution partners, understand the outcome of the manufacturer’s fair value assessment. This guide sets out the target market for each product, as well as the type of customer that would be considered outside of the target market and therefore may not provide fair value. These documents also include a summary of the fair value assessment and an overview of the product approval and product review processes that are in place for all Cigna Healthcare products.

If you would like further information on any aspect of this communication and the attached supporting guide, please do not hesitate to get in touch with me.

Yours faithfully ,

Tracy Smith
Cigna Healthcare Europe Product Lead
CignaEGSProductTeam@cigna.com