The FCA's second full year of general insurance value measures data covers January to December 2023.
The data provides firms, market commentators and organisations such as consumer groups with common indicators of value across a range of GI products. By publishing this information, the FCA aims to create incentives for firms to compete on broader elements of product value rather than price alone, and to improve the value of the products and services they offer consumers.
The data is not designed to directly support consumers while they are making decisions about insurance products. The data is historic so may not reflect products and prices available today. If consumers have questions about the value of their insurance products, they should raise these with their insurer or broker directly. It is important that consumers understand what cover they are getting – and firms must make that clear to consumers during the sales journey.
The data includes firm-specific information on claims frequencies, claims acceptance rates, average claims pay-outs and claims complaints as a proportion of claims, for a wide range of retail GI products.
Firms are required to report for relevant products sold to consumers in the UK where total retail premiums (written) are above £400,000 in the reporting period, and where there are more than 3,000 policies in force during the reporting period. The FCA is publishing data about individual firms where the same reporting threshold is met at a granular product level.
At an aggregated product level, where a minimum of 5 firms reported data, and the data met our standards required for publication:
- Claims costs as a proportion of premium range from 10% for GAP insurance (Add-on) to 72% for healthcare cash plan (All).
- There has been modest improvement among some of the products with the lowest proportion of claims costs to premiums written. However, they remain low relative to other insurance products.
- Claims costs as a proportion of premium were 56% for motor insurance and 45% for home insurance (buildings and contents combined). This is a drop compared to 2022 (when they were 64% and 50% respectively).
