The FCA is teaming up with industry, government and consumer groups to help the millions of people in the UK who don’t have protection decide if insurance is the right choice.
According to the regulator’s Pure Protection Market Study, 58% of adults have no life insurance, critical illness cover or income protection and 59% of that group has never considered it.
Actions being taken by the FCA and its cohort of partners include:
- The Money and Pensions Service and the Digital Property Market Steering Group prompting people to think about protection at key moments – such as becoming a parent or buying or renting a home. The FCA is also exploring how other partners can help put protection on people’s radar when it matters most.
- The Protection Distributors’ Group will lead a consumer awareness campaign, targeted at groups who are less likely to take out protection products.
- The Association of Mortgage Intermediaries will lead work to help advisers improve how they discuss protection with their customers.
Those who are disproportionately unprotected – such as renters, the self-employed and gig economy workers, those on lower incomes and people with pre-existing medical conditions – will be at the centre of the regulator’s drive.
Graeme Reynolds, director of competition at the FCA, said: “Competition in protection insurance works well for existing customers. But we’re working with partners to increase coverage – so that more people are protected when they or their families need it most.”
To encourage greater innovation in the protection market, the FCA will also hold a webinar to resolve any misunderstandings about its rules and expectations that may be viewed as barriers. It will also work with the Association of British Insurers to expedite securing medical records and is inviting firms who wish to take part in a TechSprint to express their interest by 13 November.
The FCA is also urging firms to review the Pure Protection Market Study to understand what good looks like and consider whether they need to improve how they deliver, and evidence, positive outcomes for consumers.
