The FCA has published its final report on its general insurance add-ons market study. The report finds that the add-on mechanism has a clear impact on consumer behaviour and often affects consumers' decision making, often providing a structural point of sale advantage.
The FCA also found that many consumers are getting poor value not just from some add-on products but also from standalone purchases, as well as a lack of transparency and comparability about the value provided by general insurance products. The FCA is working to design remedies and will consult on proposals later in 2014.
This CII policy briefing sheds light on the report's key findings.