The Financial Conduct Authority (FCA) is taking “active regulatory engagement” in targeting the issue of medical evidence delays for consumers seeking protection insurance.
It will gather key stakeholders to understand the impact delays to medical evidence can have and to identify potential solutions.
In the final report of its pure protection market study, the FCA said there was need for “renewed momentum and active regulatory engagement” in tackling a problem which has seen other industry initiatives attempt to solve.
As with the rest of its market interventions, the regulator is expecting to see progress within 12 to 18 months.
The subject was the biggest industry concern raised by advisers in Health & Protection’s annual research of intermediaries operating in the UK individual protection market and has been a significant issue for several years.
‘Many consumers experience delays’
The regulator raised the subject as part of its key plank to extend protection cover to more people in the UK, particularly among those disproportionately unprotected.
It acknowledged that delays in obtaining relevant medical information can be a significant friction in underwriting and claims journeys, particularly for consumers with pre‑existing medical conditions.
Furthermore, it noted the industry, including the Association of British Insurers (ABI), has previously sought to address these challenges.
“However, this remains a complex area, and our study has highlighted that many consumers continue to experience delays, underlining the need for renewed momentum and active regulatory engagement,” it said.
As a result, it is holding an industry roundtable which will discuss the topic and identify solutions and areas of further investigation.
This will consider:
- the impact of delayed access to relevant medical information on consumers being able to access the cover they need and their experience of making claims, and
- identify potential solutions for the ABI and other relevant stakeholders to investigate further.
“To support the ABI’s continued work on this, the FCA will seek to bring together a range of relevant stakeholders for a roundtable – insurers, government, regulators, health representatives, consumer representatives and other stakeholders,” the FCA said.
“We plan to hold the roundtable in Q1 2027, with progress delivered within the next 12 to 18 months,” it continued.
“We expect this initiative to complement existing activity, participating firms must comply with competition law, and the initiative should have clear objectives and success measures.”
The inclusion of health service representatives is likely to be critical as GPs and other health practitioners are often noted as a key source of delays for accessing medical evidence.
This is often due to doctor surgeries being overworked, under-staffed, or lacking the right technology to simplify the process, while GP report fees have also been criticised.