The Financial Conduct Authority (hereafter just “FCA”), the British Supervisory Authority, intends to launch a market study into how pure protection insurance products are sold; the “pure protection” products are designed to help individuals and their families with their finances should the policyholder die or become unable to meet their financial commitments in case of illness.
The study will be launched later in 2024/25, and it will be focused primarily on the sale of 4 specific types of products: (i) term assurance; (ii) critical illness cover; (iii) income protection insurance, and (iv) whole of life insurance including policies for over 50s that offer guaranteed acceptance.
The FCA is concerned that these insurance products can provide real protection and that some products may be providing poor value for money.