The Financial Conduct Authority (FCA) has updated its terms of reference for its Pure Protection Market Study. The update detailed the regulator’s feedback from the market and added provisions for the protection gap and barriers to innovation and investment.
The study, which launched in August 2024, will examine four key product areas: term assurance, critical illness cover, income protection and whole of life insurance. The positive notes were that the FCA recognised high pay out rates and favourable pricing models for consumers. These are healthy signs for the regulator, but it still had concerns around commission agreements, competition in the market and vulnerable customers, among other factors. The terms of reference focus on two main areas of the market, providers and intermediaries, however, it has acknowledged the role that reinsu...
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