Regulations
By Bruce Buterin
1 / 15
Britain's financial watchdog wants insurers to do better. The Financial Conduct Authority dropped its interim findings this week, and the message is pretty clear: too many people…
2 / 15
More than half of UK adults don't have pure protection products, according to the FCA's competition review.
3 / 15
Graeme Reynolds runs competition at the FCA and also handles insurance duties on an interim basis.
4 / 15
Some firms already show good value for customers, the FCA noted. The regulator will crunch updated 2025 data for its final report, which should land in Q3 2026.
5 / 15
Industry feedback closes March 31, 2026.
6 / 15
Pure protection insurance covers three main areas: life insurance, critical illness coverage, and income protection.
7 / 15
The FCA also wants to streamline how people buy these products. Right now the sales process is pretty complex, which probably explains why uptake stays so low.
8 / 15
Clear communication matters here, the FCA said. People can't make good choices about their financial security if they don't understand the options.
9 / 15
Fresh 2025 data will drive the FCA's final analysis. The authority wants to use current market information to back up any changes it proposes.
10 / 15
Insurance providers and consumer groups have until March to weigh in. The FCA particularly wants insights from these stakeholders since they see the market from different angles.
11 / 15
Marketing strategies also need examination, according to the FCA. Too many consumers still don't know about protection product benefits.
12 / 15
The FCA's push fits into broader regulatory work on financial inclusivity. By January 2026, the authority plans workshops between insurers and consumer groups.
13 / 15
Digital platforms might expand consumer reach, the interim report suggested. Online tools could simplify purchasing and make protection products more visible to potential buyers.
14 / 15
Stakeholder feedback will be crucial for the final report. Major insurers like Aviva and Prudential are expected to share market experiences and insights.
15 / 15
But the regulator didn't specify exactly which digital partnerships it's considering or give timelines for the pilot programs.
The Currency Analytics
Want the full story?