FCA Pure Protection Market Study Report
The Property Franchise Group PLC notes the FCA's interim report on the distribution of pure protection products, which concludes the market is generally working well and delivering good consumer outcomes with high claims acceptance rates and low complaint levels. The FCA's observations on pricing and panel structures align with the Group's existing practices, and the report offers increased regulatory clarity for the sector. The FCA also aims to help firms reduce the "protection gap" where consumers would benefit from, but do not have, pure protection.
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The Property Franchise Group PLC, the UK's largest multi-brand property franchisor, notes the FCA's publication of its interim report into the distribution of pure protection products to retail customers ('the Report'). As the Group's Financial Services division operates within the UK protection market, including the distribution of pure protection products, the findings of the Report are relevant to its regulatory environment.
Summary
| · | The FCA concludes that, in many respects, the distribution of pure protection products is working well and delivering good consumer outcomes. |
| · | Report highlights high claims acceptance rates, low complaint levels and indicates no expectation of significant market-wide intervention. |
| · | FCA observations on pricing practices and panel structures align with how our Financial Services division advises on this process and have always been embedded within its strategic approach. |
| · | The FCA recognises that there are many consumers who would likely benefit from pure protection, but who don't have it ("the protection gap") and want to help firms reduce this gap. |
| · | The findings provide increased regulatory clarity and reduce any perceived uncertainty for the sector. |
Michelle Brook, Executive Director and MD of Financial Services, commented: "We welcome the FCA's report findings, which recognise that the protection market is delivering positive outcomes for consumers when supported by strong governance and high-quality advice. The outcome reflects the approach we take across our Financial Services division, where consumer outcomes and regulatory standards are central to how we operate. The Report provides helpful clarity for the sector and reinforces our confidence in the long-term opportunity to support customers in addressing the protection gap."
The full report can be found at: https://www.fca.org.uk/publication/market-studies/ms24-1-4-market-study-distribution-pure-protection-products-retail-customers-interim-report.pdf
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