Background

A major UK insurer, deeply committed to upholding the FCA’s Consumer Duty, sought to ensure its premium finance offerings were consistently fair and transparent. With evolving regulatory expectations and heightened scrutiny on customer outcomes, the insurer needed robust, third-party evidence to guide strategic pricing and demonstrate its commitment to doing right by customers.

The Challenge

• Regulatory Pressure: Upcoming Consumer Duty submissions required clear evidence of fair value and transparency in premium finance products.
• Executive Alignment: The Board and ExCo needed a concise, data-driven narrative to inform decisions on product design, pricing strategies and customer communications.
• Market Visibility: Internal data alone couldn’t benchmark performance against competitors or evolving industry standards for customer fairness.

Our Solution

Consumer Intelligence delivered a bespoke Premium Finance Benchmarking Report, featuring:

1. Comprehensive Market Analysis – Aggregated premium finance pricing and policy terms across leading UK insurers.

2. Customer Outcomes Metrics – Aligned pricing movements with customer income bands and risk profiles.

3. Benchmark Positioning – Highlighted where the insurer sat relative to peers on price fairness, transparency and add-on value.

Outcomes & Impact

• Accelerated Decision-Making
  The insurer’s ExCo and Board were able to rapidly endorse pricing refinements, knowing each was backed by independent market data.

• Regulatory Confidence
  This will allow them to demonstrate to the FCA in their July submission not only compliance, but a forward-looking commitment to customer outcomes, smoothing the approval process.

• Enhanced Customer Fairness
  Benchmark-driven adjustments led to more transparent premium finance offerings, directly supporting the insurer’s Consumer Duty objectives.

Why It Matters

By embedding independent benchmarking into their governance processes, the insurer has not only fortified its regulatory standing but also reinforced its pledge to act in customers’ best interests, setting a new standard for transparency and fairness in premium finance.