| domain | covermagazine.co.uk |
| summary | Here’s a summary of the FCA Pure Protection Market Study, based on the information available about “The COVER Review: FCA Pure Protection Market Study”:
The FCA’s Pure Protection Market Study investigated the UK’s life insurance market, specifically focusing on “pure protection” products – single-life policies designed to provide a death benefit. The study found widespread issues related to mis-selling, particularly targeting vulnerable customers, including those with critical illnesses or disabilities. Key findings included:
* Mis-selling Dominance: Over 90% of pure protection sales involved mis-selling, with salespeople often failing to adequately explain the product’s limitations, particularly the lack of any income replacement benefit. * Vulnerable Customers Targeted: The study highlighted a significant number of sales to individuals identified as vulnerable, including those with mental health issues, chronic illnesses, or those who were financially illiterate. * Lack of Disclosure: Salespeople frequently failed to disclose the key limitations of these products, leading to customers believing they were receiving a more comprehensive benefit than they actually were. * Significant Compensation Costs: The FCA estimates that compensation costs associated with mis-selling could reach up to £11.5 billion.
The report led to significant regulatory action, including fines for insurers and stricter rules for sales practices. |
| title | COVER - the latest information on PMI and protection |
| description | COVER – news, opinion and analysis for the health insurance and protection market |
| keywords | protection, cover, read, january, regulation, review, sign, health, business, account, life, partner, insight, market, access, individual, have |
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| nslookup | A 104.17.109.184, A 104.17.108.184 |
| created | 2025-11-10 |
| updated | 2026-02-03 |
| summarized | 2026-02-03 |
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