Moreover, for those with more complex insurance needs, the upfront costs that involve chasing GP reports, complex underwriting and longer conversations could be completely offputting for someone whose family may end up desperately needing the financial support that insurance can provide.
Again, the regulator has seemingly conflated 'cost' with 'fair value', forgetting that if people are expected to pay £600 or so upfront for a £30pcm average premium, they just won't do it.
And this will leave people with no safety net, no protection at all in the likelihood that something will happen to them.
Don't get me wrong: consumer duty needs to be applied in the spirit, not just the letter of the law. The FCA is right to highlight failures.
But before the regulator gets any further down this road, please can brokers and providers look to see where they can self-regulate better; reviewing all products, pricing and recommendations and working together to make sure there is no reason for the regulator to remove commission on insurance products.
