What is the definition of a consumer under the Financial Conduct Authority's Insurance: Conduct of Business Sourcebook (ICOBS)?

The definition of a consumer under the Financial Conduct Authority's Insurance: Conduct of Business Sourcebook (ICOBS) specifically refers to a natural person acting outside their trade or profession. This definition is crucial as it differentiates consumers from businesses and ensures that individuals purchasing insurance products for personal or domestic use receive the appropriate protection under the regulatory framework.

In this context, the focus is on protecting individuals who are seeking insurance for their personal needs, as opposed to those purchasing insurance in a professional capacity. This distinction is essential because consumers generally have different needs and vulnerabilities compared to businesses, which may have more resources and expertise to navigate the insurance market effectively.

The options that include a person acting for trade or as a business entity do not align with the consumer definition intended to encompass personal and domestic insurance purchases. Therefore, understanding this definition helps clarify the specific regulatory protections available to individual consumers in the insurance sector, reinforcing the importance of the right regulatory oversight as outlined in ICOBS.