Narrowing the ‘protection gap’ could help cushion families from financial shocks
The regulator is partnering with industry and consumer groups after research found 58% of adults lack life, critical illness or income protection.
- The Financial Conduct Authority launched work to narrow a "protection gap," as research indicates 58% of adults lack life insurance, critical illness cover, or income protection. The Pure Protection Market Study identified this widespread vulnerability.
- Consumer research carried out among more than 14,300 people found 59% have never considered their protection needs. The FCA remains concerned this leaves families vulnerable to unexpected financial shocks, illness, or bereavement.
- The Money and Pensions Service and the Digital Property Market Steering Group will prompt consumers at key life stages, while The Association of Mortgage Intermediaries and The Protection Distributors Group lead awareness campaigns for underserved groups.
- Graeme Reynolds, director of competition at the FCA, said: "Competition in protection insurance works well for existing customers. But we're working with partners to increase coverage." The regulator expects meaningful progress by the end of 2026.
- Ewen Tweedie, actuarial director at financial services consultancy Broadstone, said this "presents an opportunity for insurers to consider how they are promoting the importance of protection for all." The regulator will monitor implementation over 18 months, with a progress update by the end of 2027.
15 Articles
15 Articles
Evening Standard
Narrowing the ‘protection gap’ could help cushion families from financial shocks
The Financial Conduct Authority said research indicates 58% of adults have no life insurance, critical illness cover or income protection.
Millions go unprotected as FCA rallies industry to act
The Financial Conduct Authority (FCA), the regulator behind the UK’s Pure Protection Market Study, is joining forces with partners across industry, government and consumer groups to widen protection insurance coverage for millions of people who currently have none. New figures show that 58% of UK adults hold no life insurance, critical illness cover or income […]
FCA’s pure protection report ‘most important regulatory review for years’
The Financial Conduct Authority (FCA) has published its final Pure Protection Market Study report, setting out the work it will do to protect consumers. In a statement accompanying the report, the FCA said: “While the market is working well for consumers who have protection insurance, millions of people remain unprotected. Around 58% of adults have …
Industry reaction to the FCA's Pure Protection Market Study
The FCA’s response to its Pure Protection Market Study has prompted discussion across the protection sector, with industry experts sharing their views on the regulator’s findings, proposed actions and the ongoing challenge of closing the protection gap. In this reaction piece, protection professionals and consumer representatives share their perspectives on the FCA’s next steps The […]
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