UK FCA initiates market study on fairness of premium finance in motor and home insurance.

The UK Financial Conduct Authority (FCA) has begun a market study to assess the fairness of premium finance products in motor and home insurance, where consumers often pay in installments at interest rates of 20-30%. The study will evaluate value, customer awareness, commission roles, and competition barriers. Additionally, a government taskforce aims to find ways to stabilize or lower insurance premiums while ensuring proper coverage, analyzing factors affecting costs.

October 16, 2024
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