Competition study unveiled on premium finance as APRs hit 30%

Insurance providers and brokers that offer options to their customers to pay premiums monthly or in other instalments instead of annually could see their profits cut back on this £1.2 billon market after the FCA launched a competition market study.

By Neasa MacErlean

The regulator has particular concerns over value for money and whether competition is working effectively. An interim report is timetabled by the end of June next year - including a progress update and proposed next steps.