The Financial Conduct Authority (FCA) has announced a market study into pure protection, aiming to determine if the market provides fair value for customers.
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 brokers 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 market. Commission stru...
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