FCA has published its 4th set of General Insurance value measures data – after delaying publication because of COVID-19. It says the data now shows concerns about the value of personal accident and key cover add-on insurance.
The data, to the year ending 31 August 2019, shows information on claims frequency, claims acceptance rates and average payouts for home, home emergency, personal accident and key cover. FCA has also assessed the proportion of money raised in premiums that is paid out in claims, which gives an indication as to which products may offer worse value than others. Home offers 50% premium/claim payout, but personal accident not quite 15%.
FCA expects soon to publish a policy statement on last year’s proposals for reporting value measures for almost all general insurance products. It will also publish a report setting out its views that the home and motor insurance markets are not working well for consumers – although many consumers shop around, others are not getting a good deal.