The Financial Conduct Authority has published its final report on the premium finance market study. It finds the market serves many customers but raises fair-value concerns over the cost of paying motor and home premiums in monthly instalments.
What happened
The FCA released the final report, MS24/2, on 3 February 2026. Average APRs for premium finance have fallen 4.1 percentage points since 2022, saving customers about £157 million a year. The FCA says some home and motor premium finance costs remain high relative to the credit risk, and it urges every firm to review whether its product delivers fair value. The study launched in October 2024 and published an interim report in July 2025.
What this means for you
If you pay monthly, the total cost of credit matters as much as the headline premium. Compare the APR and the full yearly cost against paying annually. Our analysis of the real cost of premium finance explains the impact, and our guide to complaining and the Financial Ombudsman are routes if a charge looks unfair.
Sources: FCA, Premium Finance Market Study MS24/2 final report (3 February 2026); Addleshaw Goddard summary (19 February 2026).