The City’s main regulator is to investigate Britain’s insurance industry amid concerns that “vulnerable” customers are being ripped off when taking out critical illness cover or income protection insurance.
The Financial Conduct Authority will launch a market study into how “pure protection insurance products”, which also include term assurance and whole of life insurance, are sold.
The investigation comes after unhappy customers raised concerns that “competition is not working well in the market”. The FCA wants to look at any potential conflicts of interest in commission payments to brokers, as well as checking that customers understand what they are buying.
“Pure protection can offer peace of mind and financial security, often when people are at their most vulnerable,” Sheldon Mills, executive director of consumers and