Put simply, this isn’t enough.
The FCA has permitted the insurance industry to adopt a business model which is riven by potential conflicts of interest and that seems to use complexity as a weapon with which to beat policyholders.
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If the regulator stops short of a thoroughgoing investigation of the entire picture it will not get to the heart of what has truly gone wrong here and it will not answer the essential question of why so many policyholders believe they have cover when so many insurers believe they do not.
The result will be the continued decline of an industry that was once a jewel in the crown of British business.
Rob Smart is the technical director at Mactavish
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