The Financial Conduct Authority (FCA), the UK’s regulatory body for financial markets, has flagged issues with information sharing between insurers and brokers, raising concerns over the identification of target markets.
In its latest review, the FCA has highlighted that insurers and brokers are still failing to provide customers with fair value in some cases, according to FF News.
Although progress has been made, the regulator emphasised that many companies continue to lack adequate information, governance, and oversight to ensure consistently good outcomes for their clients.
According to Matt Brewis, Director of Insurance at the FCA, the organisation is committed to ensuring that consumers receive fair treatment. He remarked, “Insurers need to make sure their customers are getting fair value. Progress is being made, but we are still seeing too many examples of insurers and brokers lacking the right information, governance, or oversight to ensure their customers get consistently good outcomes.
All insurance firms should take note of our findings and make improvements where appropriate. We’ll continue to take action where we see poor value so consumers can have confidence when buying insurance products.”
Earlier this year, the FCA took action on guaranteed asset protection (GAP) insurance, temporarily pausing sales with several firms after raising concerns that the products were not offering customers fair value. In May, following changes made to the products, the FCA allowed some of these insurers to recommence sales.
In addition to these warnings, the FCA has released its latest Value Measures Data, covering the period from January to December 2023. The data outlines the importance of ensuring products align with FCA rules and deliver fair value. The regulator reiterated its stance, cautioning that it will take regulatory action if insurers fail to meet these standards.
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