Consumer Panel to examine challenges facing the insurance industry

17 July 2012

Mike Dailly speaking today at the UK Industry Summit on Consumer Insurance Law and Regulation in London, set out how the Consumer Panel will over the coming year concentrate greater focus on the General Insurance industry. Given the critical role that general insurance can play in protecting and enhancing lives the Panel believes there is more debate to be had about how best to ensure a healthy and customer-focused industry.

Amongst the issues that the Panel will consider are any evidence of price at the expense of quality, difficulties in renewing policies and the increase in insurance complaints. In particular, the Panel is concerned about the over-concentration on price and whether this is leading to a hollowing-out of the benefits provided by insurance policies.

Mike Dailly, Consumer Panel Working Group Chair commented:

“Price comparison has become the holy grail of the insurance industry in recent years. Yet there are growing concerns about reducing the benefits available to policyholders, leading to a hollowing-out of insurance policies.

General insurance enhances people’s lives, yet prices have escalated. Worryingly, there are growing numbers of people who simply cannot get insurance for flooding or for their vehicles. With complaints on the rise insurers clearly have some questions to answer on the fairness of insurance policies and current business models.”

 

Notes to editors

  1. Mike Dailly’s speech.
  2. The Consumer Panel is a statutory body under the Financial Services and Markets Act 2000 and was initially established by the Financial Services Authority in December 1998. The Panel advises the FSA on the interests and concerns of consumers and reports on the FSA's performance in meeting its objectives.
  3. The emphasis of the Panel's work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA's remit. More information about the Panel's work
  4. Photographs and biographical details for Adam Phillips
Tuesday, 17 July 2012