FCA sets out plan to get more families thinking about life cover
The City regulator will work with industry, government and consumer groups to reach the 58% of UK adults who have no life insurance, critical illness cover or income protection.
The Financial Conduct Authority (FCA) has set out a plan to help more people think about life insurance, critical illness cover and income protection, after its research found that 58% of UK adults have none of these, and 59% of that group have never even considered it.
The plan follows the final report of the regulator's Pure Protection Market Study. It found that competition works well for people who already have cover, and the FCA is not planning new market-wide rules. Instead, the Money and Pensions Service and the Digital Property Market Steering Group will prompt people at key moments, such as becoming a parent or buying or renting a home. The Protection Distributors' Group will run an awareness campaign, and the Association of Mortgage Intermediaries will help advisers improve how they talk about protection.
The work will focus on groups most likely to be unprotected, including renters, the self-employed and gig workers, people on lower incomes and those with pre-existing medical conditions. The FCA will also work with the Association of British Insurers to cut delays in getting medical records, and says the work will start by the end of 2026.
Industry commentators also pointed to a "beneficiary gap", where policies not written in trust can see payouts held up in probate with the rest of an estate. For families who already have cover, checking whether it sits in trust is a simple, sensible step.
Based on reporting by Insurance Edge (22 September 2026). Information only, not advice.
Information only. This is general information, not financial, tax or legal advice, and not a personal recommendation. Tax rules depend on your individual circumstances and can change. Please speak to a qualified, FCA-regulated adviser or a solicitor before acting.