The timeline was included in the FCA’s latest Regulatory Initiatives Grid, which outlines the projects currently being undertaken by the body.
The timeline for the study shows that formal engagement is planned through 2025, as well as publishing 'several pieces of analysis, on specific subjects, to share [the FCA's] latest thinking', with 'key milestones' expected at the end of this year and end of 2026. The regulator has also indicated that the review will carry a "high" impact for firms.
The pure protection market study, formally launched in March, is designed to explore 'whether the market is functioning well and whether consumers are receiving good outcomes', including whether: the structure of commission encourages advisers to suggest switching that may not be beneficial for customers; premiums are being raised by insurers to pay a higher commission to an intermediary; the products provide fair value; and whether the market supports innovation and growth.
At the time of launch, Sarah Pritchard, Executive Director of Supervision, Policy, Competition & International at the FCA, said: “Consumers rely on pure protection to provide an important safety net, often when they are at their most vulnerable be it through bereavement, illness, or injury. We’re determined to ensure the market is working well and delivers good outcomes for consumers by testing it or suggesting improvements."
Highlighting the significance of the work in its Regulatory Initiatives Grid, the FCA said: “Consumers rely on pure protection products to provide financial resilience, often when they are in vulnerable circumstances, so it is a particularly important sector.”
