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The study confirms that selling a product as an add-on often lead to consumers purchasing products that were of poor value and not what they needed. It was also found that the value of general insurance products is not always clear.
The FCA remain committed to strengthening the transparency and comparability of the value of general insurance products and have proposed to impose a requirement on firms to publish claims ratios as a measure of the value of a product.
We are currently reviewing the report and assessing the likely impact for dealers.
The next steps for the FCA will be to work on remedies and will consulting shortly with businesses on their design. Once this happens there will be another consultation later this year.
Please click here for a full copy of the report.