General Insurance value measures

In October 2019 we launched the fourth General insurance (GI) value measures pilot. Participating insurers have reported their value measures data to us from three areas: claims frequencies, claims acceptance rates and average claims pay-outs. The publication of the value measures pilot data has been delayed. Please see our page on coronavirus information for firms for further updates.

In January 2019 we consulted on proposals requiring firms to report General Insurance (GI) value measures data to the FCA for publication.

We received feedback from 36 respondents which gave us important insights into our proposals. We continue to believe that value measures are necessary to help us ensure that consumers get value from GI products. 

We are keen to ensure that our work on value measures is aligned with any remedies being developed through the GI pricing practices (GIPP) market study. We will therefore refine the value measures proposals alongside work on GIPP remedies and expect to publish any value measures Policy Statement alongside our Final Report on GIPP.


Read Consultation Paper 19/8

View the 2018 data

View the 2017 data

Download the 2017 and 2018 comparison data (XLSX)

In January 2019 we published the third set of data in our general insurance value measures pilot, covering data for the year ended 31 August 2018.

The value measures data will provides firms, market commentators and organisations such as consumer groups with common indicators of value across a range of insurance products. By publishing this information, we aim to create incentives for firms to compete on broader elements of product value than price alone, and to improve the value of the products and services they offer consumers.

This publication covers the year ended 31 August 2018. The previous datasets for the year ended 31 August 2016 and 31 August 2017 were published in January 2017 and March 2018 respectively. 

Firm data

Key trends from the 2018 data

We also use the pilot data to monitor trends in the market. For the data that are comparable year on year, we set out some of the high-level comparisons between the 2017 and 2018 data.

Chart tips: hover over data series to view the data values and filter the data categories by clicking on the legend.

Figure 1: Claims frequencies

The value measures data show that claims frequencies have reduced slightly for home from 5.3% to 5.0% and home emergency (add-ons) from 7.1% to 6.1%, while claims frequencies for home emergency (standalone) have increased from 62% to 68% and key cover have increased from 1.6% to 1.9%. Average claims payouts for home insurance increased from £3,400 to £3,500.


Data table

Figure 2: Proportion of firm product submissions with claims acceptance rates above 90%

In terms of the 2018 claims acceptance rates, the chart below shows that almost three quarters of product submissions from firms involved in the pilot reported claims acceptance rates above 90%.


Data table

Figure 3: Claims acceptance rates

If we compare claims acceptance rates for 2017 and 2018, the value measures data show that claims acceptance rates have remained relatively stable across the pilot products. However, we have seen a decrease in the proportion of key cover claims which were accepted from 86% to 57%. This was largely driven by an increase in rejected claims by one firm. 


Data table

Pilot products

The general insurance products included are:

  • Home (combined buildings and contents)
  • Home emergency insurance
  • Personal accident insurance sold as an add-on to motor or home insurance
  • Key cover sold as an add-on to motor insurance

Value measures

The value measures included in the pilot are:

  • Claims frequencies: How often consumers are claiming on their insurance policies – calculated as the number of claims registered, divided by the average number of policies in force
  • Claims acceptance rates: How likely claims are to be accepted – calculated as the number of claims registered less the number of claims rejected, divided by the number of claims that have been registered.
  • Average claims pay-out: Average claims pay-out which could include internal costs and relevant external costs as well as pay-outs to policy beneficiaries. For example, costs could include internal or external claim investigation costs or payments to third parties to repair a customer’s damaged wall.

Find out more detail on the definitions and the information request and guidance we gave to firms providing the data.


In our general insurance add-ons market study we found poor value in both add-on and some stand-alone products sold by firms. Following the market study, we announced in Feedback Statement 16/01 that we would pilot the publication of value measures data. We have now published three annual sets of data covering claims frequencies, claims acceptance rates and average claims pay-out by UK and EEA insurers for four general insurance products. The pilot has allowed us to develop and refine value measures and obtain evidence on its impact ahead of the consultation proposals we have published.

To find out more about the background to the pilot see:

DP 15/4 – Developing General Insurance Add-ons Market Study – Remedies: Value Measures

FS 16/01 – Feedback Statement on DP15/4 – General insurance value measures