FCA to launch protection commissions probe over competition concerns

Study will be launched later in 2024/25

Isabel Baxter
clock • 1 min read

The Financial Conduct Authority (FCA) is launching a market study into how pure protection insurance products are sold following concerns that competition is not working well in the market.

The FCA said it has concerns that the design of commission arrangements may not allow firms to deliver good outcomes to policyholders. It is also concerned that some products may be providing poor value, for example if the total premiums paid over a lifetime far exceed the maximum conceivable payout. To understand how the market is working, the FCA stated it will aim to explore consumers' engagement with and understanding of the products they are buying, the competitive constraints on insurers and intermediaries, and potential conflicts of interest in the structure of commission. The ...

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