Advisers at COVER's Protection and Health Summit have warned that capping or removing commissions, or introducing a fixed fee model, as a result of the Financial Conduct Authority’s (FCA) upcoming market study into pure protection could lead to poor customer outcomes.
Their comments were made in response to a speech by the regulator on the upcoming market study at the Summit last week (07 November, 2024). The FCA has been consulting with the industry on the terms of reference for the study, which it plans to launch in Q1 2025. At the Summit, Peter Lukacs, head of the competition economics department at the FCA, said the study will focus solely on individual policies, including term assurance, critical illness, income protection and guaranteed acceptance. Lukacs noted the FCA is not going to dive into details around the underwriting of these product...
To continue reading this article...
Join COVER for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, key trend analysis and industry insights.
- Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
- Receive breaking news stories straight to your inbox in the daily newsletter.
- Members only access to monthly programme 'The COVER Review'
- Be the first to hear about our CPD accredited events and awards programmes.
