The FCA has announced that is partnering across sectors to expand protection insurance coverage for millions of unprotected people in the wake of its MS24/1.5 Pure Protection Market Study final report. The FCA reports that, whilst the market is working well for consumers who have protection insurance, millions of people remain unprotected.
- Around 58% of adults have no life insurance, critical illness cover or income protection – and 59% of that group has never considered it. The FCA’s view is that “millions could be left vulnerable” in the event of a death in the family, serious illness or loss of income.
- To help more people consider whether protection insurance is right for them, the FCA will join forces with partners from industry, government and consumer groups. Actions include:
- The Money and Pensions Service and the Digital Property Market Steering Group will prompt people to think about protection at key moments – such as becoming a parent or buying or renting a home. The FCA is also exploring how other partners can help put protection on people’s radar when it matters most.
- The Protection Distributors’ Group will lead a consumer awareness campaign, targeted at groups who are less likely to take out protection products.
- The Association of Mortgage Intermediaries will lead work to help advisers improve how they discuss protection with their customers.
- The work will focus on groups who are disproportionately unprotected – such as renters, the self-employed and gig economy workers, those on lower incomes and people with pre-existing medical conditions.
- The FCA wants to see greater innovation in this market. It will hold a webinar for firms to address any misunderstandings about its rules and expectations that may be seen as barriers. It will also work with the Association of British Insurers to reduce delays in obtaining medical records and is inviting firms to take part in a TechSprint – they should express their interest by 13th November.