Today the Financial Conduct Authority (FCA) has launched a consultation proposing new rules requiring firms to report General Insurance (GI) value measures data to the FCA for publication. Alongside the Consultation Paper, the FCA has also published a third annual value measures dataset, covering the period August 2017-August 2018.
The FCA’s previous work has found issues of poor value in the GI market[1], and that there are no commonly available measures to assess the value for money of GI products. In response to this, since 2016 the FCA has been piloting the publication of value measures data[2] with firms, and the pilot has had a positive impact in the market. It has improved transparency and awareness of a common set of measures of product value, helping firms to assess the value of their products and make improvements.
The proposals[3] set out today would introduce rules requiring firms to report value measures data for publication. The FCA also propose to extend the scope of value measures reporting to cover most general insurance products, as well as an additional measure to identify where consumers are unhappy and have made a complaint as part of the claim process. The consultation also proposes that firms must use the value measures data when considering whether their products offer value to their customers as required by the FCA’s existing rules.
Christopher Woolard, Executive Director of Strategy and Competition said:
'It is encouraging to see that the value measures pilot has been successful and that firms have already been using the data to make changes and product improvements.
'We have identified poor product value as a key area of harm in this market. The proposals we have set out today aim to increase competition on product value, which will benefit firms and consumers.'
The FCA is now seeking comments on the proposals set out in this Consultation Paper[3], which closes on the 30 April 2019.
Notes to editors
- Consultation Paper 19/8: General Insurance Value Measures reporting[4]
- General Insurance value measures data – year ending 31 August 2018[3]
- General Insurance value measures pilot[2]
- On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA[4].