Emma RadmoreFOS has published complaints data covering Q1 2024/5 (April – June 2024). Highlights include: over 76,000 new complaints – an increase of 70% from the same period last year; credit cards were the most...
Category - Insurance
FCA publishes GI value measures data
The FCA has published its general insurance value measures data for 2023 – the second full year of reporting. The latest data continues to highlight products that do not appear to be delivering fair value in the...
FCA fines and bans individual for dishonest and reckless conduct
The FCA has banned Martin Sarl from working in the financial services industry for acting without honesty and integrity. The regulator has also fined Mr Sarl £5,021. The FCA’s investigation found that between...
Harry WellsFCA seeks views on insurance regulation
The FCA has published a discussion paper on the regulation of commercial and bespoke insurance business. It is seeking views on whether its current rules for commercial insurance products strike the right balance...
PRA finalises expectations on funded reinsurance
Following its consultation, the PRA has finalised its expectations in respect of insurers entering into or holding funded reinsurance (FundedRe) arrangements as cedants (SS5/24). The PRA has also issued a Dear CEO...
Lucy HadrillTravel insurance complaints at highest level since Covid
The FOS has announced that it received 4,466 complaints about travel insurance in the financial year 2023/24, a 19% increase on the previous year. The only time that figure has been higher in the last 10 years was when...
PRA updates on dynamic insurance stress test
The PRA has published a statement setting out further information on the dynamic general insurance stress test (DyGIST) that it intends to run in 2025. As a reminder, the objectives of DyGIST are to: assess the UK...
FOS publishes annual complaints data for 2023/24
FOS has published the annual complaints data for the 2023/24 financial year. Most notably, complaints about the banking sector are at their highest level in at least a decade. In the last financial year, consumers...
PRA publishes Life Insurance Stress Test approach
The PRA has published a set of documents setting out its approach to the 2025 Life Insurance Stress Test. The test will apply to UK life insurers active in the bulk purchase annuity markets and will contain a core...
PRA updates on Solvency UK
Gareth Truran of the PRA has given a speech in light of the updated Matching Adjustment regime for insurers going live on 30 June. He said insurers now have all they need to use the Solvency UK reforms to support their...
FCA publishes findings from insurance multi-firm Consumer Duty review
The FCA has published the key findings from its review of 20 larger insurance firms’ approaches to outcomes monitoring under the Consumer Duty. These included general insurers, life insurers, intermediaries and...
IAIS consults on achieving fair treatment for diverse consumers
The International Association of Insurance Supervisors (IAIS) is consulting on a draft application paper on how to achieve fair treatment for diverse consumers as part of its DEI work. The paper does not introduce any...
PRA finalises matching adjustment changes
The PRA has published its feedback on responses it received to its consultation paper on reform of the Solvency II Matching Adjustment, together with new rules, supervisory statements and statements of policy and...
Tenet firms enter administration
The Tenet Group Limited is winding down its operations, which has now resulted in two of its hosting firms entering administration. The firms closed to new business at the end of March, and most of their advisers either...
FCA allows firms to restart GAP insurance sales
Following the pause in GAP insurance sales implemented earlier this year, the FCA has permitted several firms to recommence their sales of GAP. The firms permitted to resume sales of GAP insurance have materially...
PRA updates on insurance branch supervision
The PRA has provided feedback on the responses received to its consultation on the PRA’s approach to the authorisation and supervision of insurance branches. 10 responses were received, which generally supported...
Treasury lays draft Solvency II reform regulations
Treasury has laid before Parliament a draft Statutory Instrument that will make a number of technical changes to existing legislation to implement certain post-Brexit Solvency II reforms and ensure prudential regulation...
FCA speaks on key role of insurance brokers
Emily Shepperd has spoken on the key role insurance brokers have to play in the financial ecosystem. She focussed on the recent significant growth in brokered markets, and how future regulation might affect the industry...
FCA updates on implementing Consumer Duty for closed products
The FCA has written to firms in the following sectors on implementing the Consumer Duty for closed products and services by 31 July 2024: Asset management; Consumer finance; Consumer investments; Life insurance; Retail...
FOS publishes half-yearly complaints data
FOS’ latest half-yearly complaints data shows a rise of 20% in complaints during H2 2023, with the rise driven mainly by banking and credit complaints. Within that sector, current accounts and credit cards...
PRA updates on insurance regulatory returns
The PRA has updated its guidance on regulatory returns it requires from insurers. The page confirms that all reports should be submitted electronically, and provides links to the insurance taxonomy and a filing manual.
Government responds further on progress of Edinburgh reforms
The Government has published a second formal response to its December 2023 report on the progress of the Edinburgh reforms. This response is more detailed than the Government’s initial response and includes an...
PRA speaks on developments in bulk purchase annuities sector
Lisa Leaman (Head of Division, London Markets at the PRA) has delivered a speech on developments in the bulk purchase annuities (BPA) sector. Highlights include: Solvency II reforms to the matching adjustment (MA) –...
FCA updates complaints data
The FCA has published updated complaints data based on returns from then nearly 300 firms reporting at least 500 complaints within 6 months or 1000 within a year. Key findings from the 2023 H2 data include: Complaints...
ABI acts on motor premium finance
The ABI has announced a new set of Premium Finance Principles, designed to try better to manage the charges on consumers who pay monthly for motor insurance. The ABI says it considered, and discussed with the FCA, a...
PRA consults on final Solvency II review steps
The PRA has published a consultation on the final steps it needs to take to implement the conclusions of the Solvency II review and finalise all the PRA materials needed to replace the Solvency II assimilated laws that...
FCA publishes PEMC travel insurance signposting review
The FCA has published the findings of its review into how well consumers with medical conditions are being made aware of travel insurance available to them. The FCA introduced rules in 2020 requiring firms to signpost...
FCA updates perimeter report
The FCA has updated its Perimeter Report on its website. It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...
ABI publishes guide to supporting autistic customers
The ABI has published a good practice guide to help the insurance and long-term savings industry support autistic customers. It had found several barriers that autistic people face when trying to access the products...
FCA publishes findings of insurers’ valuation of vehicles review
The FCA has completed its multi-firm review of firms’ claims handling processes for valuing vehicles which have been stolen or written off (‘total loss’ claims). The findings are split into six key...
FCA updates on PEMC review
The FCA has announced that it has largely completed its post-implementation review of its requirements to help customers with serious pre-existing medical conditions to get travel insurance. It intends to publish the...
Government sets out third phase of Smarter Regulatory Framework
Following its Smarter Regulatory Framework (SRF) delivery plan, Treasury has published a follow-up paper which sets out the progress made so far and the government’s approach to the next phase of the SRF programme...
Lloyd’s report: generative AI and cyber risk
Lloyd’s has published a report on how the growth of generative AI could impact upon cyber risk. Whilst the report recognises the benefits generative AI can bring, it highlights that generative AI tools pose an...
FCA updates on skilled persons reports
The latest statistics for skilled persons reports FCA commissioned in Q3 2023/24 show: 24 reports in total 7 related to the retail banking and payments sector, 6 to retail investments, 5 to wholesale markets and 4 to...
FOS data shows credit card complaints on the rise
The latest FOS products complaints data (covering October – December 2023) shows that complaints about credit cards reached the highest level ever recorded in a 3-month period. 55% of these complaints were about...
PRA publishes final Solvency II review reporting rules
PRA has published its final reporting and disclosure policy following its various consultations on the Solvency II review. It has also published near-final rules which will: amend the External Audit, Fees and Reporting...
PRA publishes policy statement on Solvency II reform
Following its consultation in June 2023 (CP12/23), the PRA has published its policy statement on Solvency II reform (PS2/24). As a reminder, the main areas of reform proposed in the consultation were: simplifications...
ABI publishes guide on using AI responsibly
The ABI has published a guide on the responsible use of AI which sets out how firms in the insurance sector can put the Government’s five principles of AI into practice. As a reminder, these are accountability...
Firms pause sales of GAP insurance
At FCA’s request, multiple insurance firms have agreed to pause sales of GAP insurance. These firms account for 80% of the GAP market. FCA is concerned that GAP insurance is failing to provide fair value to...
Vida FatemiFCA issues insurers mandatory survey on non-financial misconduct
The FCA has issued a notice requiring regulated Lloyd’s Managing Agents, London Market Insurers (including P&I Clubs), and Lloyd’s and London Market Insurance Intermediaries (and Managing General Agents)...
FIN. TeamABI says motor premiums still rising
ABI’s Motor Insurance Tracker shows the average price paid for motor insurance has continued to rise. The cost to insurers to pay claims is main cause of these rises. The Tracker shows that between 1 October and...
BoE responds on PRC remit
BoE Governor Andrew Bailey has written to the Chancellor, updating last year’s response to the letter setting out the Chancellor’s recommendations to the Prudential Regulation Committee (PRC). The letter...
PRA consults on solvent exit planning for insurers
The PRA has issued a Consultation Paper (CP2/24) outlining proposals for PRA-regulated insurers to prepare for an orderly ‘solvent exit’ as part of their business-as-usual activities. The PRA aims to enhance...
TheCityUK shows strength of UK financial services sector
TheCityUK’s annual report on the UK’s position as an international financial centre says that exports relative to imports of financial and related professional services shows how competitive UK industry is...
PRA writes to insurers on supervisory priorities
Charlotte Gerken and Shoid Khan of PRA have written to insurers on PRA’s 2024 supervisory priorities. As with banks, the letter complements firm-specific communications from PRA following its periodic summary...
FCA reflects on 2023
Nikhil Rathi has reflected on some of FCA’s key achievements and milestones from 2023. He highlighted: the implementation of the Consumer Duty and changes firms have already made as a result; FCA telling GAP...
UK and Switzerland sign groundbreaking cooperation agreement
The new Berne Financial Services Agreement will permit UK and Swiss financial services businesses to provide services more easily to each other’s domestic markets. Each country will mutually recognise the...
FCA updates on retained EU laws
FCA has updated its website with details of the current state of play in relation to the repeal and replacement of retained EU laws in the financial services sector. Coming up in 2024 will be many changes and papers...
ABI research shows personalised guidance enhances financial decisions
The recent research conducted by the Association of British Insurers (ABI) in collaboration with Thinks Insight and Strategy’s Behavioural Team underscores the substantial impact of personalised guidance on...
FCA makes new rules
FCA has published new rules including amendments to: introduce the requirements on Sustainability Labelling and Disclosure (from 28 November 2023) update SYSC from 8 December in respect of changes to the proportionality...
FCA finalises new rules to replace IDD
FCA has published its policy statement and final rules which will replace the IDD Delegated Regulations with rules and guidance in the FCA Handbook. The Regulations included: the standardised IPID format; product...
FOS data shows vehicle-related complaints on the increase
The latest FOS product complaints data, covering July – September, shows that complaints relating to vehicle issues account for a quarter of all complaints. Complaints about vehicle finance are at a 5-year high...
PRA publishes consent modification for pure reinsurance branches
PRA has published an update to its Modification by Consent which has been available for pure reinsurance third country branches since Brexit. The current MbC is due to expire on 31 December, and PRS is offering an...
PRA publishes letter to CROs on underwriting profit allowed in firms’ IMs
On 11 December 2023, the PRA published a Letter to general insurers’ chief risk officers (CROs) outlining the findings of its 2023 thematic review of expected underwriting profit allowed for in firms’...
EIOPA consults on greenwashing limitation guidance
EIOPA has published a consultation on its draft Opinion on sustainability claims and greenwashing. The aim of the Opinion is to achieve more effective and enhanced supervision of sustainability claims across Europe and...
PRA Publishes Solvency II Review Considerations for year-end 2023
The PRA has published its Solvency II Review Considerations for year-end 2023. The statement outlines the upcoming changes to HM Treasury (HMT) and the Prudential Regulation Authority’s (PRA)’s Solvency II...
Statutory instruments published for UK Solvency II regime review
On 8 December 2023, statutory instruments for the UK Solvency II regime were published. The Insurance and Reinsurance Undertakings (Prudential Requirements) (Risk Margin) Regulations 2023 (SI 2023/1346) and the The...
IAIS updates on AI work
IAIS has issued an update on its work on the adoption of AI and machine learning in the insurance sector. It has reviewed guidance from 12 international supervisors and organisations. Among its conclusions are that the...
FCA publishes regulatory initiatives grid
The FCA has published the Financial Services and Regulatory Initiatives Forum’s latest biannual Regulatory Initiatives Grid. This will allow the financial services industry and other stakeholders to understand and...
Autumn Statement: financial regulatory issues
The Government’s Autumn Statement covered several new and ongoing actions relevant to the financial services sector, including: legislation to replace retained EU, mainly in the markets space (securitisations...
Government publishes PRIIPs replacement legislation
The Government has published draft legislation that will replace the PRIIPs Regulation and create a new UK retail disclosure framework for “consumer composite investments” (CCIs). The initiative is part of...
PRA consults on funded reinsurance
PRA is consulting on its proposed expectations when life insurers enter into or hold funded reinsurance arrangements as cedants. It feels it needs to set out these expectations to advance its primary objectives by...
PRA makes statement on recalculation of TMTP
The Solvency II Regulations 2015 allow firms to apply to the PRA for permission to undertake a recalculation of the deduction applied pursuant to the transitional measure on technical provisions (TMTP) every 24 months...
Supreme Court confirms postponement of limitation period for deliberate concealment of PPI commission payment
The Supreme Court judgment in Canada Square Operations Ltd v Potter supported the decisions of the County Court, High Court and Court of Appeal to hold that s32 Limitation Act 1980 applied to postpone the start of the...
IAIS publishes report on NatCat protection gaps
IAIS has published a report on the role of insurance supervisors in addressing natural catastrophe (NatCat) protection gaps. NatCat events have become more frequent and intense due to climate change, which IAIS says may...
PRA consults on FSCS general insurance limit
PRA is consulting on whether there should be an increase in the FSCS limit for general insurance. Currently, eligible policyholders will get either 90% or 100% of a valid claim on a failed insurer paid by the FSCS, with...
FCA speech: next steps for Consumer Duty
Nisha Arora (Director of Cross Cutting Policy and Strategy at the FCA) has delivered a speech on the Consumer Duty and the next steps for firms. The speech highlighted the following examples of good practice identified...
FCA updates complaints data
FCA has published updated complaints data based on returns from firms. Snapshots from the 2023 H1 data include: a slight increase in complaints from the previous 6 months (5%); most significant increases in the...
FCA updates on skilled persons reports
FCA has published the numbers of skilled persons reports commissioned in the first two quarters of 2023: From April to June it commissioned 11 reports, of which 4 related to retail investments and 3 to wholesale...
Supreme Court rules on limitation in PPI case
In the case of Smith and another (Appellants) v Royal Bank of Scotland (Respondent) [2023] UKSC 34, the Supreme Court has ruled that the claims made by claimants seeking orders under the Consumer Credit Act 1974 were...
PRA consults on insurance branch supervision
PRA has published a consultation paper, setting out its proposals to consolidate and formalise existing PRA policy on overseas insurers that write business in the UK through the establishment of a third-country branch...
PRA to run dynamic insurance stress test in 2025
PRA has announced a change in approach for its 2025 insurance stress tests. The objectives of the exercise will, as ever, be to assess solvency, liquidity and risk management against specific adverse scenarios, but in...
FCA confirms multi-occupancy insurance reforms
FCA has confirmed it is to put in place measures to ensure insurance firms act in leaseholders’ best interests and treat them as customers when designing multi-occupancy building products. It is also taking...
FCA review: terminal illness benefits in life insurance products
FCA has published the findings from its review of terminal illness benefits within life insurance protection products. A terminal illness benefit provides an early lump sum pay-out of a life insurance policy where the...
UK Finance respond to ban on cold calling
UK Finance has responded to HM Treasury’s proposals to ban cold calling in financial services and is supportive of the proposals. The measures aim to protect consumers, particularly elderly and vulnerable...
Court of Appeal finds against insolvent insurer policyholders in FSCS appeal
In the case of R. (on the application of Manchikalapati) v Financial Services Compensation Scheme [2023] EWCA Civ 1006, the Court of Appeal reinstated a refusal by the FSCS to compensate policyholders for an insolvent...
Laura WilesFCA updates on insurance market priorities
FCA has published a suite of portfolio letters for the insurance markets, off the back of its value measures data report, but covering its wider supervisory priorities. The letters note the importance of the insurance...
FCA calls on insurers to take action as it publishes latest fair value data
In 2021, FCA introduced rules requiring insurers to ensure their products provide fair value, which included submitting regular Value Measures Data to FCA. The aim of publishing this data was to create incentives for...
PRA speaks on Solvency UK
Gareth Truran of PRA has spoken on the “Solvency UK” initiative which will replace Solvency II. He said PRA is maintaining the momentum it needs to implement the reforms in 2024. He said the proposals PRA...
Court of Appeal upholds FOS jurisdiction on old PPI complaints
The Court of Appeal has confirmed that FOS has jurisdiction to deal with complaints relating to PPI underwritten by Assurant, that was sold by home shopping retailers in the early 2000s, before insurance distributors...
Q1 complaints stats show increase in motor and building issues
FOS has published its latest quarterly complaints data. The data covers April – June 2023. All the most complained-about products have seen year on year increases, and the most complained about product remains...
PRA updates on insurers in financial difficulties
PRA has published feedback on its consultation on dealing with insurers in financial difficulties and has published amended, updated and new Rulebook materials. There is a new Part of the rules on Insurers in Financial...
FCA consults on the future of the IDD
FCA is consulting on a proposal to transfer parts of the IDD that are currently in legislation into its rules, as part of the Future Regulatory Framework following Brexit. Treasury has announced its plan to repeal the...
FCA announces Direct Line pricing review
Direct Line Group has agreed to carry out a review after it found it had charged some existing home and motor customers more for their renewal than would have been charged to new customers. The review will identify all...
FCA issues customer guidance after broker enters administration
FCA has issued Q&A for customers after Verex Insurance Services, a firm which sold motor insurance products, entered administration alongside one of its ARs . The guidance explains to concerned customers that...
HM Treasury publishes response to consultation on Introducing an Insurer Resolution Regime
HM Treasury has published its response to the feedback received from its January 2023 consultation paper titled “Introducing an Insurer Resolution Regime”. The consultation sought feedback on proposals to...
Government consults on financial product cold call ban
The Government is consulting on how to ban cold calls offering any financial products. It says that once the ban is in force, it will be clear to anyone receiving a call for a financial product that the call is a scam...
Consumer Duty takes effect
The Consumer Duty has taken effect for all on-sale products. FCA has reminded consumers of the protections it gives them.
Read our summary of what FCA is expecting from firms.
FCA makes new rules
FCA’s latest Handbook Notice confirms: changes to ICOBS to reduce the impact of financial difficulties by enabling customers to maintain an appropriate level of insurance; amendments to FCA’s Glossary and...
Financial Lives conclusions make uncomfortable reading
FCA has published the results of its latest Financial Lives survey, which it says serve to highlight the importance of the Consumer Duty. During the year to May 2022: less than half of UK adults had confidence in the UK...
PRA releases statement on the recalculation of TMTP
The PRA has released its statement to insurance firms inviting them to recalculate the Transitional Measure on Technical Provisions (TMTP). In accordance with Supervisory Statement (SS) 6/16 ‘Maintenance of the...
IAIS publishes mid-year update on global insurance market
The International Association of Insurance Supervisors (IAIS) has published its Global Insurance Market Report: Mid Year Update, which provides a mid-year preview of its 2023 Global Monitoring Exercise (GME) results...
Government publishes Smarter Regulatory Framework delivery plan
Treasury has published a delivery plan setting out how the Government will deliver a Smarter Regulatory Framework (SRF) tailored to the UK now that FSMA 2023 has repealed retained EU law for financial services. As part...
Ombudsman News updates FOS initiatives
The latest edition of Ombudsman News highlights: what FOS is doing to prepare for the Consumer Duty; the annual complaints data from 2022/3; its items on hybrid scams and escape of water in unoccupied properties...
FCA highlights good and poor practice in general insurance market for customers in financial difficulty
FCA has published examples of good and poor practice arising out of its review of how the general insurance market supports customers in financial difficulty and handles claims. For customers whose policies had been...
PRA sets fees and levies for 2023/24
Following its April consultation, PRA has published a policy statement confirming the fees and levies payable for the 2023/24 fee year. Respondents welcomed the reduction year-on-year to the Annual Funding Requirement...
PRA consults on adapting Solvency II to UK market
PRA is consulting on its review of Solvency II to adapt the framework to the UK insurance market. The significant reforms proposed build on the Government’s response to its own Solvency II review consultation, and...
FSM Bill gets Royal Assent
As expected, the Financial Services and Markets Act 2023 got Royal Assent on 29 June. Heralding it, Treasury described its key features as: bringing the ability to tailor financial services regulation to fit UK markets...
FSM Bill completes Parliamentary process
The FSM Bill returned to the Lords for consideration of the few amendments the Commons had made. These were agreed, and so the Bill has completed its Parliamentary passage and now awaits Royal Assent. It is expected to...
PRA publishes insights from thematic review addressing insurance claims inflation
The PRA has published its follow up letter to Chief Actuaries of general insurance firms and Lloyd’s Managing Agents regulated by the PRA. The letter provides insights from the PRA’s thematic review of...
FSMB back in Commons on 26 June
The FSMB will return to the Commons on 26 June, for the House to consider the version as amended in the Lords.
Government publishes draft Solvency II reform regulations
In anticipation of the passing of the FSM Bill, Treasury has published drafts of two Statutory Instruments designed to make the current Solvency II regime more tailored, clearer and simpler. The Government has stated...
BoE launches system-wide exploratory scenario
BoE has launched its first system-wide exploratory scenario exercise. The exercise will include banks, insurers, CCPs and a variety of funds and will look to see how all these market players behave in stressed market...