This is information on personal lines products, provided by insurers, such as claims frequency, claims acceptance rates, average claim payout and percentage of premiums paid out in claims.
This is the fourth full year of the Value Measures Data. However, there are still some limitations in the results, such as the inconsistencies in how firms report claims acceptance data. The FCA is now conducting a post-implementation review of the value measures rules. ITC is contributing by giving feedback to insurers attending the FCA’s roundtables and working groups on this.
Despite this, the FCA puts a lot of faith in the value measures data as a way of identifying products and or firms that are not providing fair value to customers, a key outcome under the Consumer Duty.
Motor dealers experienced this firsthand with the ban on GAP Insurance in 2024 when through the Value Measures Data, the percentage of premiums paid out in claims was only 6-7%. In 2024 this figure increased to over 100%, and in 2025 it is over 50%. However, this is in part due to quirks in how the FCA calculates the metric and is something that the working group mentioned above is looking at. As the FCA itself says, “these figures should still be used with caution and may not yet be representative of product value or performance.” The GAP Insurance market has probably not yet returned to the level of sales seen before the ban.
Following the Super-Complaint to the FCA by Which? over claims acceptance rates and claims complaints as a percentage of claims registered for home and travel insurance, they are the products in the spotlight this time.
The average claim payout for GAP Insurance was over £5,000 with a 96.5% claims acceptance rate
55.7% of premiums for motor extended warranties were paid out in claims, and with a claim frequency of 33.8% of policies
As well as comparing insurers against what is published, through the working group ITC are also encouraging the FCA to publish more of the overall market data so that we can be even more confident that the products are providing value to customers.