FCA to launch protection commissions probe over competition concerns

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 ...