UK’s financial watchdog launches probe into pure protection insurance sector Reuters

LONDON (Reuters) – Britain’s Financial Conduct Authority said on Wednesday it would launch a market study into sales of pure protection insurance products, amid concerns that the design of fee structures could lead to poor outcomes for policyholders.

The study, due to be launched later in 2024/2025, will focus mainly on the sale of four specific types of products – term insurance, critical illness cover, income protection insurance and whole life insurance.

Pure protection products are designed to help individuals and their families manage their finances in the event that the insured has been unable to meet their financial commitments, usually due to illness or death.

“Sheer protection can provide peace of mind and financial security, often when people are most vulnerable. Consumers should be able to buy products that meet their needs and offer fair value,” Sheldon Mills, FCA’s chief executive for consumers and competition. , he said.

“We have seen indications that this may not be the case in the pure protection market and we will act if we find that the market is not working well.”