The Financial Conduct Authority (FCA) is planning a technology sprint event and regulatory myth-busting webinar to prompt greater development and innovation within the UK protection market.
The moves were proposed in the final report of its pure protection market study as part of its key plank to extend protection cover to more people in the UK, particularly among those disproportionately unprotected.
TechSprints bring together firms and stakeholders to work on defined market challenges and develop solutions, typically as prototypes or proofs of concept, the FCA said.
It noted this TechSprint would test technology and data‑led solutions to friction in the consumer journey, but would be subject to sufficient engagement from firms and other stakeholders with those wishing to participate needing to contact the regulator by 13 November.
Three core focus areas
The FCA said it will define the problem statements, convene participants and support delivery.
The programme will follow a structured format, including an initial bootcamp, a solution development phase and a final demo day where outputs are presented and assessed for further development and potential scaling.
The subjects highlighted as likely focuses are:
- consumer awareness and understanding, particularly for those with low financial literacy or characteristics of vulnerability;
- application and underwriting journeys, particularly for those with pre‑existing medical conditions;
- product design and access, particularly for self‑employed consumers, gig economy workers or non‑standard risk profiles.
The regulator will assess the interest from stakeholders and determine whether there is enough to proceed with the TechSprint by the end of 2026.
If it proceeds, the FCA said it will work with participants and other stakeholders to refine the problem statements and ensure they focus on the most significant barriers to improving access to and engagement with protection.
Subject to sufficient interest, it anticipates launching the TechSprint in Q3 2027.
However, if there is insufficient interest, it will instead focus on industry‑led initiatives and continue to monitor their impact on consumer outcomes, keeping under review whether further intervention or other measures may be warranted.
The FCA encouraged firms to make use of its Digital and Supercharged Sandboxes.
Myth-busting webinar
The FCA also pledged to provide greater regulatory clarity to help firms innovate and distribute suitable products with confidence.
In its report, the regulator said it found “limited evidence that our rules directly prevent innovation, but some firms may interpret the framework cautiously, creating uncertainty about how to discuss protection alongside other products, compare options or recommend products where the best outcome is not simply the lowest price”.
It will therefore run a myth‑busting webinar in Q1 2027 to “clarify regulatory expectations, reduce unnecessary compliance caution and give firms greater confidence to distribute suitable products, raise protection and innovate while supporting good consumer outcomes.”
It also used the report to highlight how expectations under the Consumer Duty apply to the drivers of the protection gap.