The Financial Conduct Authority (FCA) has published the fourth set of data from its work on its general insurance (GI) value measures pilot. The data collected during the pilot includes information on claims frequencies, claims acceptance rates and average claims pay-outs for four products: home, home emergency, personal accident and key cover
The FCA hopes that by publishing this information, it creates incentives for firms to compete on broader elements of product value than price alone, and to improve the value of the products and services they offer consumers.
The latest data highlights the FCA’s concerns about the value of personal accident and key cover add-on insurance. For the 2019 data, less than 20% of the value of premiums firms received for these add-ons was, on average, paid out in claims. The FCA said that it plans to follow up with certain firms to discuss their pilot data.
Members may access the pilot data by clicking here.
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