Following a successful pilot, the FCA has published value measures data for a wide range of general insurance (GI) products for July to December 2021.
The value of insurance products for consumers continues to be an important area for the FCA given cost of living increases and is a central feature of the incoming Consumer Duty. Firms must ensure that their products offer fair value to consumers.
This is a first set of data and the FCA will continue to analyse trends over time. General insurance is an important product for consumers and by and large provides essential protection to consumers at fair value. However, it is concerned about how the current picture presented in the data appears to compare with firms stating that virtually all products are providing fair value.
The FCA will be closely analysing the next data set due in February 2023, as well as testing the robustness of firms’ product oversight and governance arrangements, including fair value assessments.
Where the data indicates that individual firms, or products, are not providing fair value, the FCA is seeking to urgently understand their assessments and what, if any, changes have been made to the products as a result. Where the FCA is not satisfied with the explanation, it will consider what tools it should use to protect consumers.
