In response to the FCA's proposed market study into protection insurance, Tim Hogg, Director at Fairer Finance said:

"There are important issues for this market study to investigate - this is long overdue. Market failures in pure protection are leading to harm for existing customers, while under-insurance means that far too many people are not protected at all. Some over 50s products offer notoriously low value to customers, who can end up paying significantly more in premiums than their family will ever receive in payouts. The nature of competition in this market has led to intermediaries sometimes receiving what appear to be high commissions, resulting in lower value products for consumers. There are also concerns about competition weakening due to firms exiting the market - and lower competition is likely to lead to worse outcomes for consumers in the long run."