General insurance value measures

We identified poor product value as an area of harm in general insurance and have introduced reporting rules to address this.

In our General Insurance (GI) add-ons market study (MS14/1) we identified poor product value as an area of harm in general insurance. This has been caused by ineffective competition between providers of insurance products and a lack of common measures of value. 

To help address this we introduced new rules to report and publish data on value measures, as set out in our Policy Statement (PS20/9)

Firms will be required to:

  • report GI value measures data including claims frequencies, claims acceptance rates, average claim pay-outs and claims complaints as a % of claims; and
  • ensure that products offer fair value to customers in the target market.

When you need to report

The rules came into force on 1 July 2021. A firm’s first report will be for the 6-month period covering 1 July 2021 to 31 December 2021 and will be due by 28 February 2022. Subsequent reporting must be submitted annually thereafter by 28 February for the previous calendar year.  

Firms will need to submit the reports via RegData, which is our new data collection platform for gathering regulatory data from firms.

We will publish some elements of this data to further incentivise firms to improve their products. This data also provides us with valuable information when we’re supervising firms.