FCA Partners Launch Campaign As 58% Lack Insurance
FCA Partners Launch Campaign As 58% Lack Insurance
Anonymous
Key Points
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The FCA’s market study concluded that competition generally works well for consumers who already hold protection insurance, but it reminded firms of their obligations and good practice under the Consumer Duty and product-governance rules.
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The regulator does not plan to introduce new market-wide measures; instead, it said it will intervene where firms fail to meet existing regulatory requirements.
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The FCA will hold a webinar for firms to address misunderstandings about its rules and expectations that could be viewed as barriers to innovation in the protection market.
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The FCA is inviting firms to participate in a TechSprint focused on protection insurance, with companies encouraged to register their interest by Nov. 13.
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Fairer Finance managing director James Daley criticized the FCA’s study, calling it “a missed opportunity,” indicating that consumer advocates believe the initiative may not go far enough.
Nearly 6 in 10 UK adults lack life insurance, critical illness cover, or income protection — and most have never thought about buying it. FCA has launched a major campaign with industry partners and consumer groups to close this protection gap, targeting key life moments like becoming a parent or buying a home.
The effort will focus on the most vulnerable: renters, self-employed workers, gig-economy staff, lower-income households, and people with pre-existing health conditions. The Protection Distributors' Group will lead awareness work, while mortgage advisers will improve how they discuss protection with customers.
Why 58% of Adults Skip Protection
Most people with no insurance have never considered buying it. FCA's market study shows that competition works well for people who already hold protection — but a massive gap exists for those who don't. The regulator found that certain groups face steeper barriers. Renters, self-employed workers, and those with medical conditions struggle most to get coverage.
The FCA's Watchful Approach Over New Rules
The FCA will not impose new market-wide regulations. Instead, it will step in only when firms fail to meet existing rules. The regulator reminded insurers of their obligations under the Consumer Duty — rules that demand fair treatment and transparent product design.
Confusion about FCA expectations may be slowing innovation. The regulator plans a webinar for firms to clear up misunderstandings. It's also hosting a TechSprint focused on protection insurance, with registration deadlines set for November 13 to encourage new solutions.
Campaign Targets Life's Major Moments
The Association of Mortgage Intermediaries will train advisers to talk about protection more effectively. The campaign will prompt people at key life events — becoming a parent, buying a home, or starting to rent — to consider insurance for the first time.
Consumer Advocates Say Push Falls Short
Not everyone believes the campaign goes far enough. Fairer Finance managing director James Daley called the FCA study "a missed opportunity," signaling that consumer groups want stronger action. The FCA will also work with insurers to speed up access to medical records — a known barrier to quick claims.
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