What happened?
In an article published in Insurance Edge, TCC Group CEO Joe Norburn explores the FCA’s pure protection distribution market study. The regulator is thoroughly investigating fair value, broker commission structures, competition, and consumer access to protection products.
With the study’s final report due in Q3 2026, firms are advised to proactively audit their policies and strengthen their evidence trail.
Why does it matter?
Firms cannot afford to wait until the final report is published. Remuneration models and distribution channels must be reviewed to ensure they do not cause consumer harm or create conflicts of interest, allowing firms to demonstrate clear alignment with Consumer Duty standards.
Supporting sources
Frequently asked questions
How should firms prepare for the pure protection study outcomes?
Firms should strengthen their internal governance, review broker commission models, and improve transparency around pricing and fees to ensure fair value is evidenced across all customer groups.
What is the FCA's primary concern in pure protection?
The FCA is concerned with commission-driven incentives and complex distribution models that may lead to higher costs, limited product access, and poor value for consumers.
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