Value measures data from 38 insurers for claims frequencies, claims acceptance rates and average claims pay out have been published by the Financial Conduct Authority for four general insurance (GI) products in a pilot project designed to illustrate the benefits of making value data commonly available for key stakeholders.
The FCA undertook to pilot the publication of value measures in July 2014 after a market study of general insurance and add-ons (ie insurance bought alongside other products) found that competition was not effective.
‘General Insurance value measures data – year ending 31 August 2016’ publishes the value data relating to
- home insurance (combined building and contents)
- home emergency insurance
- personal accident insurance sold as an add-on to motor or home insurance
- key cover sold as an add-on to motor insurance
The data is set out in a table that also includes the largest five distributor/brand arrangements for each of the 38 insurers.
While some individual consumers may use the value data directly, FCA mainly intends it to enable consumer groups and market commentators to better assess products and to incentivise firms to improve the value of the products they offer consumers.