We've published our final findings on how well competition is working in the distribution of pure protection products, setting out action to close the protection gap and support consumers.
We launched this market study in March 2025 to assess whether competition in the distribution of pure protection products – such as life insurance, critical illness cover and income protection – works well for consumers.
We've found that competition generally delivers good outcomes for people who hold these products, with a wide range of products available and high claims acceptance rates.
But 58% of people don't hold any protection products, and 59% of those have never considered their protection needs. We are concerned where this ‘protection gap’ results from limited consumer awareness and understanding, or from challenges in the sales process making access difficult.
This Final Report sets out our findings and a package of FCA, industry and wider stakeholder-led measures intended to help more consumers consider their protection needs and access suitable cover, while maintaining good outcomes for those who already hold protection. These measures will be taken forward through existing frameworks rather than broad new regulation.
This report is relevant to insurers, intermediaries and advisers involved in the distribution of pure protection products, as well as trade bodies including the Association of British Insurers (ABI), the Association of Mortgage Intermediaries (AMI), the British Insurance Brokers' Association (BIBA) and the Protection Distributors Group (PDG). It will also interest consumer groups, government departments and other stakeholders working on financial resilience and access to protection products.
From October 2026, we'll begin engaging with industry, firms and wider stakeholders to mobilise delivery arrangements. Our work and industry-led actions will start by the end of 2026, and we expect meaningful progress within the next 12 to 18 months. We'll monitor implementation closely, review progress regularly and assess the effectiveness of these interventions.
Subject to sufficient interest, we plan to run a TechSprint in Q3 2027 to explore technology-enabled solutions to the protection gap. A TechSprint brings together firms and stakeholders to develop technology-based solutions to a defined market challenge.
Expressions of interest are invited by 13 November 2026. We will confirm by the end of 2026 whether the TechSprint will proceed. Further details are in Chapter 3 of the Final Report.
Please submit expressions of interest to: [email protected].
Annex 1: Summary of feedback to our Interim Report (PDF)
Annex 2: Fair value assessments – Positive examples and areas for improvement (PDF)
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