No broker commission bans or compulsory 0% APRs on premium finance, says FCA
The Financial Conduct Authority has confirmed it is not going down the route of banning broker commission in premium finance and will not be forcing a 0% annual percentage rate or introducing a single level market-wide cap.
The watchdog launched a review into premium finance for motor and home insurance last October saying it had been concerned about it “for some time”, adding it “may not represent fair value for some customers and that competition may not be functioning effectively”.
It was a move broadly welcomed by industry practitioners.
In an update released today, the regulator detailed it believes a commission ban would not be appropriate “as we have rules in place already around remuneration, consumer
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@insuranceage.co.uk or view our subscription options here: https://subscriptions.insuranceage.co.uk/subscribe
You are currently unable to print this content. Please contact info@insuranceage.co.uk to find out more.
You are currently unable to copy this content. Please contact info@insuranceage.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@insuranceage.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@insuranceage.co.uk
More on Insight
Bain’s Jensten buy completes
Global private investment firm Bain Capital has completed the purchase of Jensten Group from private equity house Livingbridge.
Start-up broker Pelican’s MD praises “transformative” Aviva support programme
Chris Braniff, managing director of Pelican Insured, has made changes to all of the broker’s processes following taking part in Aviva’s Future Leaders Programme.
People Moves: 1 – 5 December 2025
Keep up to date with the latest personnel moves in insurance.
SRG reveals deal spend in takeover year
Specialist Risk Group’s parent spent £327.32m on 10 deals in 2024, the year the takeover by Warburg Pincus and Temasek completed.
Podcast: Reid and Clegg present Double Indemnity, episode five – Howden’s Peter Blanc
Peter Blanc, head of global M&A at Howden, sits down with industry provocateurs Stuart Reid and Toby Clegg to run the rule over the state of the market in the latest edition of Insurance Age’s Double Indemnity podcast.
First Central confirms job cut plans
Insurer First Central has confirmed proposed plans to cut staff numbers by around 160, with most taking effect in late January 2026.
Newbie News: Merlin Insurance Brokers
Richard O’Brian, founder and CEO of Merlin Insurance Brokers, has targeted growing the property and construction specialist broker by 80% in 2026 and already has an application in to the FCA to be fully authorised.
Bridgehaven completes on first deal as it eyes European expansion
Bridgehaven Europe has completed its acquisition of SureStone Insurance DAC, following receipt of all required regulatory approvals.