The Financial Conduct Authority (FCA) has published the second set of data in their general insurance value measures pilot.
The publication of value measures data was one of the remedies from the FCA’s general insurance add-ons market study, which found poor value in both add-on, and some stand-alone, products. The FCA also found that consumers, firms and other organisations found it difficult to assess value due to the lack of a commonly available measure of value.
To help address these issues, the FCA said it would pilot the publication of value measures data. The data published include claims frequencies, claims acceptance rates and average claims pay-outs by insurer, for four general insurance products:
- home insurance (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
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said:
“Publishing value measures data increases the range of information available about general insurance products. This will help increase market focus on suitability and value, as well as the headline price.
“We have already seen examples of where publishing the first set of data has incentivised insurers to make product improvements and focus more on overall product value.”
The second set of data relates to 36 insurers and covers the year ended 31 August 2017.
The data collected are part of a pilot designed to allow the FCA to further develop the measures and collect evidence of their impact. This evidence will inform a decision on whether to publish a consultation on new rules for firms to report value measures data. We have previously said the pilot will run for a minimum of two years, with the possibility of a third set of pilot data for the year ending 31 August 2018. We will decide later this year whether to undertake a third pilot.
Notes to editors
- The data are available here.
- See the general insurance add-ons market study.
- On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA.