Insurance: Disadvantaged
The question
To ask the Chancellor of the Exchequer, if she will request that the Financial Conduct Authority assess whether people living in the 244 neighbourhoods experiencing the highest levels of deprivation are paying above average rates for (a) home, (b) car and (c) travel insurance.
Answered by Lucy Rigby
The government expects that insurers deliver good outcomes to consumers and firms are required to do so under Financial Conduct Authority (FCA) rules. These rules require firms to ensure their products offer fair value. This means the price paid by consumers must be reasonable compared to the benefits they receive. The FCA monitors firms and has robust powers to act against firms that breach its rules.
The government’s Financial Inclusion Strategy, published on 5 November 2025, recognises that insurance has an important part to play in financial resilience and wellbeing, and sets out a range of interventions to improve access. This includes a total signposting initiative which will help underserved consumers find insurance policies which meet their needs.
The government also plans to publish the final report of the cross-government Motor Insurance Taskforce in the autumn. As part of the taskforce’s work to understand how the cost of motor insurance impacts on particular groups of customers, the FCA is conducting statistical analysis to evaluate the impacts on different age groups and consumers living in areas with a higher proportion of minority ethnic residents. The FCA will publish its findings later this year.
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