What is the primary objective of the ICOBS within the insurance market?

The primary objective of the Insurance Conduct of Business Sourcebook (ICOBS) is to achieve outcomes for consumers and address potential consumer detriment. This regulatory framework is designed to ensure that insurance firms operate in a manner that protects the interests of policyholders and promotes fair treatment. By focusing on consumer outcomes, ICOBS aims to enhance transparency, ensure that consumers receive clear and relevant information, and ultimately lead to better-informed purchasing decisions for insurance products. This consumer-centric approach is essential for fostering trust in the insurance market and safeguarding against practices that could negatively impact consumers.

The other options do not capture the main aim of ICOBS. Establishing a list of prescriptive processes for firms may be a side effect of implementing ICOBS, but it is not the primary goal. Promoting competition among firms can be a beneficial result; however, it is secondary to ensuring consumer protection and outcomes. While regulating the pricing of insurance products is important, it is not the primary focus of ICOBS, which instead emphasizes consumer well-being and the prevention of consumer harm.