This is the FCA's first full year of general insurance value measures data, for January to December 2022. General insurance is an important product for consumers and provides essential protection to consumers.
The data provides firms, market commentators and organisations such as consumer groups, with common indicators of value across a range of GI products. By publishing this information, the FCA aims to create incentives for firms to compete on broader elements of product value rather than price alone, and to improve the value of the products and services they offer consumers.
The latest data and the FCA's ongoing interactions with firms, shows that some general insurance firms may be failing to comply with its rules around offering fair value and delivering good outcomes for their consumers under the Consumer Duty.
Key findings include:
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Claims costs as a proportion of premium range from 4% for GAP Insurance (Add on) to 65% for Motor (All), with the median in that range at 35%.
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Many of the products we commented on last time appear to still have the lowest proportion of claims costs to premiums written. These products include 4% for GAP Insurance (Add-on) (5% H2 2021), 7% for GAP Insurance (Standalone) (8% H2 2021) and 15% for Excess Protection (for Motor Insurance) (Add-on) (10% H2 2021).