Britain's insurers told to demonstrate better value for customers
Adds industry reaction in paragraph 6
By Huw Jones
LONDON, Aug 21 (Reuters) -Some of Britain's car, home and other insurers are still unable to show they provide good outcomes for consumers, the country's financial watchdog said on Wednesday, a year after the introduction of tougher protections for policyholders.
The Financial Conduct Authority (FCA) published a 'thematic review' of the general insurance sector that found poor customer value and potential harm due to shortcomings in product governance, oversight and controls.
Many insurers have not implemented effective frameworks that provide evidence of why good value is being provided to customers, the FCA said.
Firms were also not adequately considering the total price paid for a policy, including the impact of remuneration on the overall value of a product.
"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," Matt Brewis, the FCA's director of insurance, said in a statement.
The Association of British Insurers (ABI) said it was encouraging to see that progress has been made with product oversight and governance arrangements, but it was "clear that there is more that needs to be done and members remain strongly committed to this process".
The FCA introduced its Consumer Duty, comprising broad and comprehensive consumer protections across the financial sector, in July 2023 in a bid to draw a line under years of mis-selling scandals in the industry.
On Wednesday it published its latest indicators for value in insurance products, using the proportion of premiums paid in claims as a measure.
"Where our data suggests that value appears low, we will be in touch with firms later in the year to understand their products and the actions they have taken to improve value," the FCA said.
Claims costs as a proportion of premiums range from 72% for healthcare cash plans to 56% for motor insurance, and 45% for home insurance, falling sharply across a range of 'add on' insurance.
"Where we believe a firm has failed to act and is still providing poor value products, we will intervene where necessary to protect consumers," the FCA said.
FCA Value for Money in General Insurance Graphic https://tmsnrt.rs/4fW3RJQ
Reporting by Huw Jones; editing by Louise Heavens and Jason Neely
免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。