We set out our proposals to require firms to report General Insurance (GI) value measures data to the FCA for publication.
We are also proposing additional requirements for firms to use the value measures data as part of the monitoring and governance of their insurance products. Our proposals are aimed at addressing poor product value and quality, and reducing the risk of unsuitable GI products being bought or sold.
In publishing these data, we aim to improve market transparency and competition, and encourage firms to make product improvements, and to provide an additional tool to help us supervise firms.
We ran a pilot of the publication of value measures data. Our pilot tested the publication of 3 data metrics (claims frequencies, claims acceptance rates and average claims pay-outs) for 4 insurance products (home, home emergency, personal accident and key cover). We published 2 sets of pilot data in 2017 and 2018, following which we assessed the impact of the pilot. We found that it had a positive impact, improving transparency and awareness (by industry and the media) of different indicators of product value. It also allowed firms to use the data to consider product improvements. Alongside this consultation paper we have published a third dataset.
This consultation will be of interest mainly to:
We want to hear your feedback on our proposals.
The consultation period is 13 weeks. Please send us your comments by Tuesday 30 April 2019.
You can also:
We will consider all the feedback and intend to publish a Policy Statement later this year with our response to the consultation feedback.