We set out our proposals to require firms to report General Insurance (GI) value measures data to the FCA for publication.
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. However, there is further work needed and, informed by the feedback to our consultation, we will review the value measures definitions and reporting proposals and reassess the cost estimates for the cost benefit analysis.
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.
Value measures continues to be an important area for the FCA, and in the interim period, we will launch a fourth value measures pilot data collection and publication.
Read our update on value measures within the interim report for our GI Pricing Practices Market Study
Our CP19/8 proposals are aimed at addressing poor product value.
In publishing these data, we aim to improve market transparency and competition, and encourage firms to make product improvements and 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. We are launching a further pilot data collection covering data for the year ended 31 August 2019.
This consultation will be of interest mainly to:
We expect to publish any value measures Policy Statement alongside our Final Report on our GIPP market study. In the interim, we are launching a fourth pilot of the publication of value measures data for our pilot products.