Context
The FCA has updated its MS24/1: Pure Protection Market Study web page with a July 2025 update covering requests for information, consumer research and upcoming publications.
Key points to note and next actions
- Following a pilot, the FCA issued requests for information to a sample of over thirty insurers and intermediaries asking for information about sales, distribution strategy, commissions, the nature of competition, and consumer outcomes. The FCA will use the information to examine many of the concerns listed in its terms of reference (e.g., the incentives created by commission structures, competitive constraints on insurers and intermediaries and the influence of other market participants on distribution). The FCA is currently receiving and processing the responses, and expects to complete much of its review and analysis in Q3 2025.
- The FCA’s consumer research is in progress, exploring consumers’ experience of purchasing pure protection products and the outcome, considering differences between different types of consumer and distribution channel. This is to help the FCA assess how confident and effective consumers are at selecting and purchasing protection products. The FCA expects to complete its consumer research early in August 2025.
- To keep stakeholders updated and provide an early opportunity to engage with its analysis, the FCA intends to publish at least two papers in early Q3 2025, ahead of its interim report scheduled for the end of the year. These will include a market overview paper setting out a factual overview of the (retail) pure protection sector in the UK. It will cover the main products, distribution channels, firm participants, customers, regulatory landscape and market developments. The papers will also include a consumer research paper setting out the findings of its consumer research on pure protection in the UK (described above).