UK life sector profitability to be dented by new consumer rules

New rules requiring UK financial services companies to show that their prices represent fair value to customers will negatively affect life sector profitability, according to Fitch Ratings. "We expect the rules, introduced as part of the Financial Conduct Authority's (FCA) consumer duty package, to lead some insurers to reduce customer charges to avoid potential findings of overcharging and the reputational damage that could result from them. "However, the reductions are likely to be modest as firms will be reluctant to materially weaken their profitability, and we do not expect any r...