The FCA have concluded their review into the protection market.  It is game, set and match to the Status Quo Ante.  Nothing is going to change.  In an astonishingly shallow paper, the FCA mention each of the following.

Indemnity Commission is graced with a single line entry.   This practice of borrowing from the client’s expected premiums is fraught with conflicts of interest, and drives clawback and churning.  But from the FCA – nothing.

They looked at Loaded Premiums.  This is what they say:  “…loaded premiums do not on average result in higher premiums for customers.” 

FCA note that due to Loaded Premiums at bigger firms, small IFAs tend to receive lower commission rates.

FCA reject idea to use IRN numbers for advisers – too complex, they say.

FCA say claim rates >50% for protection is sufficient. Interesting, because most general insurance has a claims ratio of 60% - whereby most of the premiums taken go out again in claims.  Anything less looks awkward.  The prime reason the PPI £54bn review was triggered was due to claims ratio of approx. 20%. (even claimants got compensation for misselling!) 

FCA publish the claims ratio for income protection at just 39%.  If that doesn’t ring alarm bells, then nothing will.

The only thing FCA have actually committed to do after this monumental waste of time and money looking into the protection sector, is to encourage protection demand  Guess what?  This is via the Association of Mortgage Intermediaries, Unions, The Money and Pension Service and other public sector / quangos - none of which contribute money to the FCA.  We do that.  They'll do anything but recommend advice.  A good use of our FCA fees?