From Yahoo Finance: 2025-03-24 11:51:00

The UK’s FCA is conducting a market study on pure protection insurance products to ensure alignment with consumer interests and regulatory objectives. Concerns include unfair practices like unnecessary consumer switching and inflated premiums due to commission structures. In 2023, £4.85bn ($6.27bn) was paid out in claims. Initial findings and proposed steps expected by 2025.

The FCA’s study will assess if commission structures incentivize unnecessary switching, if insurers raise premiums to pay higher commissions, and if products offer fair value. The authority aims to ensure the market delivers good outcomes for consumers in times of vulnerability. Stakeholder feedback will shape the review’s scope and potential improvements.

FCA’s Sarah Pritchard emphasizes the vital role of pure protection insurance in providing a safety net for consumers during challenging times. The study will allow for a thorough examination of the market before determining next steps. Regular updates will be provided, and stakeholder feedback is encouraged to guide the review process.



Read more at Yahoo Finance: UK’s FCA initiates probe into protection insurance sales