FCA annual report highlights need to improve insurance market competition

The FCA has reiterated the need to improve both competition and distribution in the general insurance sector.

Publishing its annual report and accounts, the regulator said that following previous research, it knew that: “Around 6 million home and motor policyholders paid high or very high prices in 2018 and were not getting a good deal on their insurance. We are considering remedies to tackle the harms we identified.”

Following its thematic reviews of distribution, the regulator said it hoped to see: “Better targeting of products, removal of poor value products, fair treatment of longstanding customers and firms taking swifter and more substantial action to rectify issues causing consumer harm.”

In 2019/20 the FCA imposed 15 financial penalties on firms for misconduct totalling over £224m.

Charles Randell, chair of the FCA, said: “To ensure that we are able to meet the challenges ahead, we will continue to transform our own organisation, building on lessons from our rapid response to the coronavirus crisis. This transformation will equip us better to identify harm, intervene more quickly and take tough enforcement action against serious misconduct as we supervise nearly 60,000 authorised firms.”

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