The FCA has published the first of two papers in its pure protection market study, on the structure of the UK pure protection market for retail customers.
Key findings included:
- The UK pure protection market is highly concentrated, with the top five insurers accounting for around 80% of market share based on annual new business premiums in 2023;
- The market is characterised by strong competition on price, leading to low margins and decreasing premiums, and in some cases, firms exiting the market;
- Whole of life insurance contributed the largest share of in-force policies; and
- Term assurance was the most common purchased pure protection product.
The report is one of two papers to be released on the FCA’s Pure Protection Market Study, with an interim report expected by the end of the year.
Although it is not a formal consultation, the FCA welcomes feedback by 15 October 2025 on any important points it has not captured.