Advisers warn FCA of poor customer outcomes from market study 'rash decisions'

“We need to ensure the wider impact is being considered”

Jaskeet Briah
clock • 6 min read

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

  • 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.

Join now

 

Already a Cover member?

Login

More on Adviser / Broking

Loaded premiums: The individual fair value question remains

Loaded premiums: The individual fair value question remains

Response to a COVER interview

Tony Müdd
clock 23 March 2026 • 3 min read
IPTF names 7Advisers cohort for 2026

IPTF names 7Advisers cohort for 2026

Neil Ewing added to the IPTF board

Jaskeet Briah
clock 23 March 2026 • 2 min read
Cover accessibility and service levels remain stagnant: COVER Summit North 2026

Cover accessibility and service levels remain stagnant: COVER Summit North 2026

Insurers "need more skin in the game" to expand claims teams

Jaskeet Briah
clock 20 March 2026 • 4 min read