Why is the FCA making changes to the selling of add-ons?

A recent study by the FCA confirmed that selling a product as an add-on often leads to customers purchasing products that were of poor value and not what they needed. The FCA also found that the value of general insurance products is not always clear.

With an aim of strengthening the transparency and comparability of the value of general insurance products the FCA have proposed rules and guidance on:

  • banning opt-out selling, and
  • improving product information provision in relation to general insurance add-ons.