The Financial Conduct Authority (FCA), the regulator behind the UK’s Pure Protection Market Study, is joining forces with partners across industry, government and consumer groups to widen protection insurance coverage for millions of people who currently have none.
New figures show that 58% of UK adults hold no life insurance, critical illness cover or income protection, and that 59% of that group say they have never given the products any thought. The FCA warns this leaves millions exposed to financial hardship should a family face bereavement, serious illness or a sudden drop in income.
Several partners are taking on specific roles as part of the drive. The Money and Pensions Service and the Digital Property Market Steering Group will encourage people to think about protection at pivotal life stages, such as starting a family or moving into a new home, and the FCA said it is looking at further ways to bring protection to people’s attention at the right moment.
The Protection Distributors’ Group will run a consumer awareness campaign aimed at groups least likely to hold cover, while the Association of Mortgage Intermediaries will lead efforts to help advisers raise the subject more effectively with clients. The initiative builds on the FCA’s Pure Protection Market Study and will concentrate on groups who are least likely to be covered, including renters, the self-employed, gig economy workers, lower earners and people with pre-existing health conditions.
Alongside these partnerships, the regulator is pushing for greater innovation in the market. It plans to hold a webinar to clear up any confusion among firms about its rules and expectations that might be discouraging new product development. It is also working with the Association of British Insurers to cut delays in accessing medical records, a common hold-up in the claims process, and is asking firms to register interest in a forthcoming TechSprint by 13 November.
The FCA has separately published findings on how well switching, claims handling and fair value are working across the protection sector. It concluded that competition is broadly serving existing customers well, and it is not proposing new market-wide rules at this stage.
However, it has reminded firms of their obligations under the Consumer Duty and existing product governance standards, and said it will intervene where individual firms fall short. Companies operating in the space have been urged to review the report’s examples and assess whether they need to strengthen, and better evidence, the outcomes they deliver for customers.
FCA director of competition Graeme Reynolds said, “Competition in protection insurance works well for existing customers. But we’re working with partners to increase coverage – so that more people are protected when they or their families need it most.”
Copyright © 2026 RegTech Analyst
Copyright © 2026 RegTech Analyst
