The Financial Conduct Authority (FCA) is likely to publish the next edition of its insurance strategy in the next couple of months, Health & Protection understands.
The strategy will outline the regulator’s focuses for the next two years but is expected to see continuing attention on subjects causing the most significant issues around its strategic objectives.
This is likely to include fair value among other major subjects, Health & Protection understands.
The insurance strategy is a significant indicator for the industry and where it should expect the regulator to intervene as the last edition set the table for the ongoing pure protection market study and other action.
Alongside the previous edition published in September 2023 was a stark warning to protection insurers about “poor selling practices” and slow restorative action, and better due diligence of new advisers.
The regulator also highlighted that commission structures were “a potential driver of poor outcomes” and told insurers to avoid “the unnecessary re-broking of policies”.
All of these subjects have been included in the ongoing market study launched in March, while also expanding it to include other key players.
Meanwhile poor consumer support and service quality was also identified as a critical concern by the FCA in 2023, with claim settlement times and insurers’ internal target metrics being cited.
Following on from this, the regulator called out poor life insurance claims payment practices from insurers while also highlighting those providing good experiences to claimants.
As Health & Protection reported in June, it has since begun working with insurers to explore faster ways of finding out if someone has died and speed-up death claims payments.
