The UK’s Financial Conduct Authority (FCA) has published a discussion paper on product value transparency in the general insurance add-ons market.

An FCA study a year ago showed competition is not working well for consumers and many pay too much for poor-value products.

The discussion paper proposes measures the FCA could publish to help increase value.

Options include the claims ratio as a standalone value measure; a package of claims frequencies, claims acceptance rates and average claims payouts; and claims ratios and claims acceptance rates.

“We are committed to introducing a measure of value for general insurance products,” FCA Director of Strategy and Competition Christopher Woolard.

“We believe consumers in this market need to have greater transparency about what they are paying for, [and] the options set out in the paper will boost competition between firms to offer the best deal for consumers.”