The Property Franchise Group PLC (TPFG) has responded to the publication of the Financial Conduct Authority’s interim report into the distribution of pure protection products to retail customers, noting that the findings provide greater regulatory clarity for firms operating in the sector.
The FCA’s report concludes that, in many respects, the distribution of pure protection products is functioning effectively and delivering good consumer outcomes.
It points to high claims acceptance rates and low levels of complaints, while also indicating that there is no expectation of significant market-wide intervention at this stage.
The findings are particularly relevant to The Property Franchise Group’s Financial Services division, which operates within the UK protection market and distributes pure protection products.
The group said the FCA’s observations on pricing practices and panel structures are consistent with the approach already embedded within its advisory and governance frameworks.
The report also highlights the existence of a continued “protection gap”, recognising that many consumers who could benefit from pure protection products do not currently hold them.
The regulator has signalled a desire to work with firms to help reduce this gap and improve access to appropriate cover.
Michelle Brook, executive director and managing director of financial services at The Property Franchise Group, said: “We welcome the FCA’s report findings, which recognise that the protection market is delivering positive outcomes for consumers when supported by strong governance and high-quality advice.
“The outcome reflects the approach we take across our financial services division, where consumer outcomes and regulatory standards are central to how we operate.
“The report provides helpful clarity for the sector and reinforces our confidence in the long-term opportunity to support customers in addressing the protection gap.”
The group added that the FCA’s conclusions help reduce any perceived uncertainty for firms operating in the protection market, offering reassurance on the current regulatory direction and supporting continued investment in advice-led distribution.
