General Insurance value measures pilot
The Financial Conduct Authority (FCA) has published its first set of data in its general insurance value measures pilot.
The data covers general insurance value measures for 38 insurers (including both UK and EEA firms) for the year ending 31 August 2016. The pilot scorecard includes claims frequencies, claims acceptance rates and average claim pay-outs. The products covered are home (buildings and contents) insurance, home emergency, personal accident and key cover. The data is designed to provide users with a broad range of information to assess firms and product value.
On its website, the FCA states, ‘In our general insurance add-ons market study we found poor value in both add-on and some stand-alone products sold by firms. We also found that consumers find it difficult to assess value due to the lack of a commonly available measure. In DP15/4, Developing general insurance add-ons market study – remedies: value measures we set out options for publishing value measures in GI markets.
‘To help address these issues we set out in our subsequent Feedback Statement 16/1 that we are piloting the publication of value measures data, including claims frequencies, claims acceptance rates and average claims pay-out by insurer and product for four general insurance products.’
The pilot will cover two periods of one year (with potentially a third period of one year). The pilot will allow us to refine the value measures and obtain further evidence of these measures ahead of any potential consultation.
For further information, see: www.fca.org.uk/publications/data/general-insurance-value-measures-data-year-ended-31-august-2016