FCA approaching protection probe with 'open mind'

Regulator has laid out a broad remit for investigation

Cameron Roberts
clock • 2 min read

The Financial Conduct Authority (FCA) has stated that it will approach its market study into pure protection with an "open mind".

The scope of the study will look at term assurance, critical illness cover, income protection insurance and whole of life insurance. It will focus on policies purchased by individuals on their own behalf. Insurers and intermediaries, including IFAs, will be under the microscope, with products and distribution methodologies being key considerations for the FCA, in demonstrating fair value for customers. The study will have three key drivers: commission arrangements regarding fair value; products possibly not providing fair value; and competition weakening due to insurers exiting the ma...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Protection

Record protection payouts must spur advisers on

Record protection payouts must spur advisers on

These aren't products that sell themselves

Ahmed Bawa
clock 01 November 2024 • 5 min read
Could a broader advice definition boost protection's reach?

Could a broader advice definition boost protection's reach?

'No one wakes up in the morning thinking about buying life insurance'

Paul Yates
clock 22 October 2024 • 4 min read
Are we talking enough about protection and succession planning?

Are we talking enough about protection and succession planning?

Why are more IHT liabilities for gifts not being protected?

Naomi Greatorex
clock 30 September 2024 • 4 min read