Category: Group risk regulation · Reviewed by Taylor Watts, Broker · New Business · Last reviewed 2026-06-10
ICOBS is the FCA Handbook sourcebook governing the conduct of insurance distribution — that is, the marketing, advising, broking and contractual handling of non-investment insurance. It applies to all UK insurance distributors and insurance providers in respect of their distribution activities and implements the Insurance Distribution Directive (Directive (EU) 2016/97) into UK regulation. ICOBS applies to group risk, group PMI, individual protection and most general insurance.
Category: Group risk regulation Also known as: ICOBS Implements: IDD (Directive (EU) 2016/97) Related concepts: FCA Handbook insurance distribution, ICOBS 5 product information, ICOBS 6 product information for non-investment insurance
ICOBS is structured in nine chapters. Chapter 1 (Application and purpose), Chapter 2 (General matters), Chapter 3 (Distance communications), Chapter 4 (Information about the firm, its services and remuneration), Chapter 5 (Identifying client needs and advising), Chapter 6 (Product information), Chapter 7 (Cancellation), Chapter 8 (Claims handling), and Chapter 9 (Renewal).
ICOBS was made under section 137A of the Financial Services and Markets Act 2000 by the FCA. It implements the IDD and additionally contains domestic rules including the Consumer Duty (PRIN 2A read with ICOBS) and the Insurance Pricing Practices Review (PS21/5) rules.
ICOBS applies to (i) firms distributing non-investment insurance contracts to retail or commercial customers and (ii) insurers in respect of their distribution activities. It does not apply to reinsurance, large risks above defined thresholds (subject to limited disapplication of certain rules), or distribution activity outside the UK.
A group risk broker advising a commercial customer applies ICOBS 5 (demands and needs analysis) and ICOBS 6 (product information) to its work, complying with ICOBS 2 (general conduct) and ICOBS 4 (disclosure of status, remuneration and conflicts). It documents its compliance for FCA inspection and Senior Managers Certification Regime governance purposes.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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