The Financial Conduct Authority has published its final Pure Protection Market Study report and announced cross-sector measures to encourage more people to consider protection insurance. It found that competition generally works well for existing customers, but 58% of adults have no life insurance, critical illness cover or income protection, and 59% of those without coverage have never considered it. The FCA does not plan new market-wide measures but will act where firms fail to meet existing requirements. Planned initiatives include prompting consumers to consider protection when becoming a parent or buying or renting a home, a targeted awareness campaign and work to improve how advisers discuss protection with customers. The measures will focus on groups that are disproportionately unprotected, including renters, self-employed and gig economy workers, people on lower incomes and those with pre-existing medical conditions. The FCA will also clarify its rules and expectations for firms, work with the Association of British Insurers to reduce delays in obtaining medical records and hold a TechSprint to support innovation. Following its findings on switching, claims experiences and fair value, the regulator has asked firms to assess whether they adequately deliver and evidence good consumer outcomes under the Consumer Duty and product governance rules.

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