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.
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 launched a fourth value measures pilot data collection and publication. This publication has been delayed. Please see our page on coronavirus information for firms for further updates.
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.
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. We launched a fourth value measures pilot data collection and publication. This publication has been delayed.