Flawed insurance products cost N Brown Group £40m
N Brown Group, a British home shopping retailer, said on July 13 that it identified "flaws" in certain general insurance products which were provided by a third party insurance underwriter and sold by the group to its customers between 2006 and 2014.
The group stated that it expects to incur nearly £35 million to £40 million "exceptional cost" in this year's income statement. However, it anticipates that there may be mitigating actions to reduce the overall net cost.
The announcement follows a review prompted by a recent industry-wide request from the FCA that firms ensure that general insurance products and add-ons offer value to their customers.
The majority of the referred products were sold to customers in the period leading up to, and including, 2011. Sales of the relevant products ceased in early 2014.
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