The Financial Conduct Authority’s Protection Market Study was a “missed opportunity” to help challenger brands like Guardian.
This is according to chairman Peter Mann, who was speaking at a launch event for the company’s CI Essentials product in the City of London earlier this week, which he described as its next step forward after a “pause for breath”.
At the same venue a year ago, Mann maintained changes to how commission is paid in the protection sector could be beneficial to newer entrants.
In launching its review of the pure protection sector, the regulator revealed it would focus on loaded commission, product churn and insurer competition.
The FCA released its interim report connected to the Market Study at the start of this year when it said it was “not anticipating making any significant market wide interventions”.
Opportunity missed
At this week’s event Mann described that report as an “opportunity missed”.
“We really thought it would have been an opportunity because it could have had the ability to help businesses like us challenge the businesses in this sector that aren’t like us.”
Mann added that the company had been looking forward to operating in a “more sensibly regulated, controlled and frankly innovative environment”.
“And we got none of that,” he continued.
“So I suppose the only consolation we can take is that at least they had a look and maybe they’ll have another look at another point in time.”
Pause for breath
And following a year in which CEO Carlton Hood joined and in which the challenger brand consulted on staff redundancies as part of its 2025 strategy to reduce growth targets, Mann described its CI Essentials launch as the next stage in taking the business forward.
“Over the last year or 18 months, we’ve unashamedly paused for breath,” Mann said.
“So we paused unashamedly and we told you we’d pause for a little while to get the business on a stable, financial structural footing that you need to take that second step forward.
“And today is the beginning of the second step forward.”
Restless innovation
Mann added that that next step forward was part of the business’ drive for “restless innovation”.
“So what can we do? What can we build that will make the difference? What can we build that will make your lives and your clients’ lives better? And today is the start,” he continued.
“We have other things in the pipeline that we will talk to you at another point in time, but today is the launch of something which we think is a valuable suite of products and hopefully another tool in your armoury.”
