Tony Müdd, divisional director - development and technical consultancy, St. James's Place, says that the FCA Market Study’s final report has not closed the book on loaded premiums, but it has changed the conversation.
There is an obvious way to read the FCA's final Pure Protection Market Study final report. Loaded premiums survived. No ban. No new disclosure requirement. No finding that they systematically increase the price consumers pay. At current levels, the FCA says they are not producing poor pricing outcomes. Cue relief across large parts of the protection market. But that reading misses the more interesting decision. The FCA has not settled the argument about loaded premiums. It has changed the argument. When the study began, the question looked simple: are insurers raising premiums to p...
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