Sheldon Mills has spoken to insurance brokers of the important role they play and how FCA is looking to regulate them proportionately. Statistics show that 67% of general insurance business and 81% of commercial insurance business in the UK is placed through brokers. He spoke of:
- the power of insurance brokers to help deliver great social good, with their ability to help customers find products that support sustainability;
- how a culture of innovation and competition can lead to better outcomes for financial services users;
- how the rising cost of living is forcing consumers into difficult decisions which may cause them to reduce their insurance cover and how brokers can add value by securing appropriate cover at the right price;
- so far, FCA thinks its pricing reform measures have led to a 5% decrease in the average price paid for motor insurance – a small increase in average new business prices has been offset by a larger fall in average renewal prices;
- the importance of consumers being aware of policy exclusions – especially in relation to Covid-related issues;
- FCA’s ongoing work on multi-occupancy business insurance;
- FCA’s work on ensuring firms that hold client money do so compliantly, and its review of the FSCS to ensure it is proportionate and appropriate in its scope and funding;
- the need for proper oversight of ARs;
- FCA’s work on strengthening its authorisation gateway and to bring down authorisation timescales; and
- FCA’s work on D& and ESG