The FCA has yesterday launched a market study into wholesale insurance broking practices. The FCA has published Terms of Reference for the study, which are discussed below. The FCA’s 2017 business plan (published in April of this year) signalled the FCA’s plans to undertake this market study (previously discussed on this blog here). The FCA
In December 2012 the FSA launched a market study designed to test how well the insurance add-on market is functioning. This market study has been picked up by the FCA which has recently published an “Occasional Paper” exploring how behavioural economics might inform an assessment of customer behaviour regarding the purchase of add-ons.
The FCA has published its provisional findings and proposed remedies following its market study into the sale of general insurance add-ons. The message was clear: competition in the market is not effective and changes must be made to address poor consumer outcomes.