FCA Proposes Scrapping Two General Insurance Value-Measures Reporting Items, Optional for 2026 and 2027 Data and Mandatory From 2028, Ahead of a Wider Review in Early 2027

The Financial Conduct Authority has completed a post-implementation review of the general insurance value measures rules and is consulting on two minor changes to reduce the reporting burden on firms. The consultation, CP26/33, was first published on 11 September 2026, closed on 9 October 2026 and was last updated on 19 October 2026. The details here come from the FCA's own consultation page. The full consultation paper was not reviewed, so details beyond the page's summary are not covered.

What the rules are

The value measures rules were introduced in 2021. They require general insurance firms to report annual data on how their products perform for customers, and the FCA publishes some of this data by firm and product. The measures include claims frequency, claims acceptance rates, average claim pay-outs and the number of claims complaints. The idea is to let anyone compare products on outcomes that matter, such as how often claims are paid and how much is paid out, and not only on price. The rules followed the FCA's 2014 market study on general insurance add-ons and a pilot scheme that ran from 2016 to 2020. Since then the FCA has introduced general insurance pricing practices rules and the Consumer Duty, both of which also shape how firms judge the value of their products.

What the review found

The review concluded that the rules improved transparency and helped firms meet their fair value obligations. It also found that there are reporting inconsistencies which make the data harder to use and compare. That is a significant finding. If two insurers report the same measure in different ways, a comparison between them can mislead, which defeats part of the purpose of publishing the data. The FCA says that a wider consultation on the rules is planned to address these issues.

The two proposed changes

The consultation proposes to remove two reporting requirements:

1. The amount by which the top 2% of claim pay-outs sit above a threshold. 2. The names of a firm's five largest distribution arrangements for each product.

The FCA says it does not publish these data points and does not use them widely in its supervisory work. It argues that removing them will reduce the burden on firms without reducing the usefulness of the data. A distribution arrangement is a relationship through which a product reaches customers, such as a deal with a broker, comparison site or retailer, so the second item would have given the regulator a view of the main channels for each product. The FCA's position is that it can do without it.

Timing

The changes would apply on a transitional, optional basis to data submissions for 2026 and 2027. They would become mandatory from the 2028 reporting year, which would be submitted in 2029. The page states that the changes are expected to take effect from 31 December 2026. In practice, firms would have a choice for two reporting cycles and then no longer need to report the items. The page lists the consultation opening date in a way that looks like a typographical error, and the page metadata gives two publication dates, 8 and 11 September 2026; the 11 September date is used here.

Who is affected

The firms directly affected are general insurance firms that report value measures data, including insurers, intermediaries and managing agents. The page also names trade bodies, consumer organisations, research companies and price comparison websites as groups with an interest, since they use the published data.

Why it is happening now

The consultation sits between two other developments. The first is the Consumer Duty, which requires firms to deliver good outcomes and monitor them. The FCA has also published its views on outcomes monitoring, and value measures data is one input to that. The second is public pressure over insurance outcomes. The FCA's page notes that in 2025 Which? submitted a super-complaint about poor outcomes in home and travel insurance, using value measures data. That shows the data being used by consumer groups to challenge firms, which is one reason the FCA is careful about what it keeps and what it drops.

Next steps

The FCA will publish feedback on the responses and then issue either a policy statement or a handbook notice. It expects to consult on wider changes to value measures in the first half of 2027. The page does not say what those changes will cover. The consultation page does not list the responses it received, and so it is too early to say whether firms or consumer groups supported the proposals.

What it means for firms and consumers

For firms, the likely effect is a modest reduction in reporting work. For consumers and researchers, the data they rely on is unchanged, because the two removed items were not published. The more important event is the wider consultation planned for 2027, which could change the measures themselves and address the inconsistency problem the review identified. Firms that want to influence that review will have an opportunity to respond.

Limits

This article is based on the FCA's consultation web page and not on the consultation paper itself. Proposals may change after consultation. It is general information, not regulatory or legal advice.