The Financial Conduct Authority published interim findings from its competition review of pure protection insurance and called on the insurance industry to help close a protection gap, seeking views on how more consumers can access cover for critical illness, death or loss of ability to work. For consumers who already hold protection insurance, the FCA found the market mostly works well, with a wide range of products, claims generally being paid when needed, and cover costs remaining stable in recent years. However, it highlighted that 58% of adults do not hold a pure protection product despite many potentially benefiting; research points to low awareness and limited prompts to consider needs, affordability constraints, misunderstandings about products and scope to improve sales processes. The FCA will review updated 2025 data ahead of its final report and will also consider ways to improve product switching so any switch clearly benefits the consumer and meets their needs. Feedback on the interim findings is due by 31 March 2026, and the FCA plans to publish a final report in Q3 2026 with final findings and an update on progress.
Financial Conduct Authority 2026-01-29
Financial Conduct Authority seeks views on interim protection insurance competition review as 58% of adults lack cover
The Financial Conduct Authority released interim findings from its competition review of pure protection insurance, urging the industry to address a protection gap and improve consumer access to coverage for critical illness, death, or loss of ability to work. Feedback is due by 31 March 2026, with a final report expected in Q3 2026.