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Ethics in insuranceFinancial Conduct Authority?regulatory

#FCA survey reveals gaps in #consumer insurance knowledge and understanding #insurance

By 10th July 2018June 24th, 2024No Comments

​Regulator publishes findings of its largest research pool with UK consumers.

Nearly 17 million UK adults with motor insurance do not know what ‘no claims protection’ means, according to the findings of the Financial Conduct Authority’s (FCA) Financial Lives Survey 2017.

The research was based on responses from just under 13,000 UK consumers aged 18 and over making it the watchdog’s largest tracking survey of consumers and their use of financial services.

According to the findings, 82% of UK adults have at least one general insurance product.

The most commonly held products are motor insurance (61% of all UK adults), combined home building and contents insurance (49%), motor breakdown (36%) and single‑trip or multi‑trip travel insurance (24% and 22%, respectively).

Buying patterns
The FCA found that age plays a large role in insurance penetration.

Just three in five (59%) 18‑24 year olds hold any general insurance products.

This figure falls to 55% for men aged 18‑24.

General insurance take-up is highest amongst 55‑64 year olds, where nine in ten (89%) hold at least one product, and rates do not decline by much beyond this age.

Broker news
The findings brought mixed news for brokers.

The calculations showed that almost 12 million people have insurance or protection products and would ‘go for the cheapest’ rather than compare the coverage of different products.

However, just over 12 million people do not think they have enough information to decide, on quality, between different insurance policies.

The investigation looked at the full range of financial services including mortgages, pensions, banking, credit and investments.

It covered consumers’ experiences of using financial products and services, as well as their experiences of dealing with the firms that provide them.

The FCA also found that 50% of UK adults (25.6 million) display one or more characteristics that signal their potential vulnerability.

It explained that this meant the consumers may be at increased risk of harm, or would suffer disproportionately if harm occurred but added that potential vulnerability does not mean all people with these characteristics will suffer harm.

Andrew Bailey, FCA chief executive, said: “I would like to thank everyone who took part in the survey.

“The findings give us a wealth of information which will be used to increase our knowledge and understanding of the issues affecting consumers and how to best protect them.”

He concluded: “The data gathered will be invaluable in helping the FCA prioritise our work. We also hope that the research will provide valuable insight for other organisations focusing on consumers and finance.”

This article  is care of and can be found here.

Tim Kelly

Tim is a highly qualified Independent Engineer with over 20 years experience as an Engineering Assessor of damaged vehicles.

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