Emma RadmoreThe FCA is consulting on plans to simplify its rules more for wholesale businesses involved in retail markets. It plans to: remove all business for “genuinely” non-UK customers from the scope of the Consumer...
Category - Insurance
Laura WilesPRA outlines captive plans
Shoib Khan has set out the PRA’s plans for the UK captive regime, in advance of it publishing its long-awaited consultation. He noted that if properly structured, captives could advance both the primary and...
AR data shows increased revenue but fewer principals
The FCA has updated its website with details on the appointed representatives population and activity. There are currently around 33,000 active ARs and 2,400 principals, representing a reduction of 5.3% in principals...
FSM Bill to have second reading
The Financial Services and Markets Bill is scheduled to have its second reading in the House of Lords on 8 June.
FCA updates operating metrics
The FCA’s latest set of operating metrics shows new firm authorisations for consumer investments, insurance and wholesale are struggling to meet the new targets, and EMR/PSR authorisation and VOP applications also...
Committee launches consumer insurance regulation inquiry
The House of Lords Financial Services Regulation Committee has launched an inquiry into the regulation of the consumer insurance market. The inquiry seeks views particularly on how home and travel insurance policies are...
PRA updates on insurance branch policy
The PRA has published its feedback statement on changes to its policy on insurance third-country branches. It has made minimal changes to what it consulted on and has now finalised changes to various relevant...
FCA warns young drivers about fake car insurance
The FCA is warning young drivers against buying car insurance through social media and messaging apps. It says about half of young drivers have bought cover this way, but many are not confident they would spot a scam...
Financial Services and Markets Bill starts legislative process
The Financial Services and Markets Bill has been published and has started its parliamentary passage in the House of Lords, where it has had its first reading but the second reading, which is when debate starts, does...
PRA consults on funded reinsurance
The PRA is consulting on changing regulatory treatment of funded reinsurance to treat it more like other investments. Life insurers pay large up-front premiums to reinsurers in return for future payments, which...
Michael LewisGovernment confirms risk transformation changes for insurance markets
The Government has published its feedback on its consultation on changes to the Risk Transformation Regulations and its next steps. It plans to: introduce more flexible funding requirements and authorisation processes...
PRA finalises some low impact amendments and consults on more
The PRA has finalised a set of low impact amendments to its rules on Fees, Skills, Knowledge and Expertise and SS3/18, and is consulting on more, which will: update the Groups part of the Rulebook; make consequential...
LMA publishes managing agent guidance
The Lloyds Market Association has published guidance for managing agents on the FCA’s PS25/21, to help them take a more proportionate approach to commercial and wholesale business. The guidance looks at:...
Court approves distribution scheme for failed insurance broker client monies
EC3 Brokers Ltd, a Lloyds insurance broker, went into administration in late 2022 holding client monies subject to CASS 5. Its clients were corporate entities which were either end-insureds/reinsureds or were producing...
Amy GallimorePRA fines insurer for solvency miscalculations
The PRA has fined U K Insurance Limited £10,625,000 in connection with miscalculation of its Solvency II balance sheet in 2023 and 2024. The miscalculations happened because of ineffective controls and resourcing issues...
FOS warns young drivers on car insurance issues
The FOS has noted some themes that young drivers can face with car insurance: drivers have unknowingly invalidated their insurance by making undeclared modifications to their cars; FOS has received several complaints...
PRA updates on next LIST exercise
The PRA plans to launch its next Life Insurance Stress Test (LIST) exercise in January 2028, following its work last year. It will provide further details at the end of 2026 after it has engaged with stakeholders to...
PRA consults on UK Solvency II own funds
The PRA is consulting on removing the requirement for insurers to need permission to classify equity accounted subordinated instruments into tiers of own funds. This was a requirement carried over from Solvency II. At...
FCA launches “Regulatory Priorities” reports with insurance sector
The FCA has announced the launch of 9 annual “Regulatory Priorities” reports that will replace its “portfolio” letters. There will be a report for each of the following sectors, in which the FCA...
PRA extends insurance branch modification by consent
The PRA has updated the modification by consent that gives relief from some reporting requirements to third-country insurance branches that solely write non-UK risks. It has extended the current modification to 30 June...
Court sanctions transfer of insurance business within Arch group
The High Court has sanctioned the transfer of the entire insurance business of Southern Rock Insurance Company to Alwyn Insurance Company pursuant to section 111 of FSMA. Both companies are subsidiaries of Arch Capital...
FCA speaks on insurance
Sarah Pritchard spoke at the ABI annual conference on innovation, growth and trust in the insurance industry. She spoke of the various new types of regulatory support available, such as through the AI Lab, Sandboxes and...
ABI publishes 2026-8 strategy
The ABI’s 2026-8 strategy continues to put customers at the forefront of its efforts. It is pleased with recent projects such as its new insurance guide for SMEs, and is now also looking to have its new Pensions...
FCA finds falling premium finance rates for insurance customers
The FCA has found that interest rates for premium finance have fallen by an average 4.1 percentage points in the past 3 years, which has resulted in savings for customers on mainly motor but also home insurance. Firms...
LMA sets out strategy
The Lloyd’s Market Association will focus its 2026 efforts on 4 areas: growth, following the Government’s confirmation that insurance and reinsurance have the potential to be key drivers of growth –...
FCA publishes interim report on pure protection distribution
The FCA has published a interim report in its market study on the distribution of pure protection products to retail customers. The report notes that the pure protection market works well in many respects, including by...
FCA publishes multi-firm review on small mutual life insurers
The FCA has published findings from its multi-firm review on customer outcomes achieved by smaller mutual life insurers. The key findings were as follows: Target Market Statements – Firms had a strong focus on...
PRA publishes 2026 supervisory plans
The PRA has published its supervisory priorities for 2026. Its main plans focus on streamlining supervision, so that periodic supervisory meetings and other activities will move to a two year cycle – an initiative...
FCA takes notice of insurance super complaint
The FCA has responded to the super complaint Which? submitted about standards in home and travel insurance markets. It had already planned to make some changes, but has now expanded its work. In particular, if will do...
ABI publishes 2025 annual report
The Association of British Insurers (ABI) has published its 2025 annual report. The report highlights the 40th anniversary of the ABI, and sets out the ABI’s crucial role in shaping the UK’s growth and...
FCA publishes pure protection market study
The FCA has published the results of its pure protection market study consumer research. Key conclusions from the quantitative results of the study include: 42% of consumers held a pure protection policy (privately...
Regulators update Regulatory Initiatives Grid
The latest edition of the Regulatory Initiatives Grid updates on timelines for 124 live initiatives across the 9 organisations covered by the grid. The press release heralding the publication highlights the themes of:...
Motor insurance taskforce publishes final report
The motor insurance taskforce has published its report on work to reduce and stabilise motor insurance premiums. The report shows that premiums have in fact been steadily dropping throughout 2025 and work will continue...
FCA consults on rule clarifications
The FCA is consulting on various rule changes to: resolve uncertainties in current rules; make some current rules clearer or more proportionate; and resolve conflicts and duplications. General changes update and remove...
FCA confirms insurance rule simplification
The FCA has confirmed changes to its rules for insurance firms, which will: clarify which rules apply to commercial insurance: the rules create an “SME watershed” so that smaller commercial customer remain...
FCA publishes package of investment regulation reforms
The FCA has published its long-awaited decisions and further proposals on reforms to how it regulates the conduct of investment business. The package comprises: consultation on client categorisation and conflicts of...
Regulators report on mutuals
The PRA and FCA have published a report on the mutuals landscape, looking at the importance of mutuals to the financial sector, and the measures the regulators take to ensure proportionality in regulation. The report...
FCA consults on admin fee reduction
The FCA is consulting on reducing its administration fee for late or overdue returns to £100. It is consulting on the proposal as part of its quarterly consultation. It says changes to its processes have resulted in...
FCA publishes multi-firm review of life insurance bereavement process
The FCA has carried out a review of life insurers’ bereavement claim process. The review covered 15 insurers representing over 75% of the life protection market. It looked at customer journeys for 4 product...
PRA consults on insurance reporting
The PRA is consulting on post-implementation amendments to the UK Solvency II rules on reporting and disclosure. The changes are mainly minor clarifications and correction of errors.
Consultation closes on 4 March.
PRA updates policy on managing climate-related risks
The PRA has published its final policy on enhancing banks’ and insurers’ approaches to managing climate risks. The consultation had planned – among other things – to strengthen governance...
John ConnorPRA publishes firm-specific LIST results
The PRA has published individual firm results from its Life Insurance Stress Test (LIST), the first of its kind conducted under the Solvency UK regime implemented in 2024. This follows the publication of its sector-wide...
FCA publishes skilled persons data for Q2 2025
The FCA has published its latest data on skilled persons reports, covering 1 July – 30 September 2025. During this period, the FCA commissioned 6 skilled persons reports: 2 reports related to insurance, 1 to...
FCA confirms end date for failed Gibraltar insurer policies
Premier Insurance Company Limited, a Gibraltar authorised insurer operating in the UK on a freedom of services basis, went into administration in October, after stopping writing new policies in January 2025. The FCA...
PRA publishes LIST results
The PRA has published the results of its 2025 Life Insurance Stress Test. It says the results, the first under Solvency UK show the sector is resilient. The exercise covered 11 insurers active in the bulk purchase...
PRA seeks views on transfer of risk in life insurance
The PRA has published a discussion paper on innovation in the life insurance sector, and sets out the regulator’s thinking on policy changes that could allow life insurers to transfer defined tranches of risk to...
PRA updates on captives plan
Shoib Khan of the PRA spoke on the PRA’s actions to support innovation in insurance markets, through its various accelerator and other initiatives. He also updated on the proposals for a UK captive regime, saying...
PRA and FCA publish guidance on Berne agreement
The PRA and FCA have published guidance for Swiss investment firms and UK insurance and investment services firms on what opportunities the Berne Financial Services Agreement brings them. Swiss investment firms can...
FCA publishes 2024 general insurance value measures data
The FCA has published general insurance value measures data for the period covering January to December 2024. Highlights from the data include that despite recent cost increases for consumers in motor and home...
FCA makes new rules
In the FCA’s latest Handbook Notice, it confirms new rules made at its October Board Meeting to: ICOBS to increase the medical condition premium trigger point for consumers with pre-existing medical conditions to...
PRA publishes final policy on streamlining liquidity reporting
The PRA has published its final policy on closing liquidity reporting gaps and streamlining Standard Formula reporting. Key changes include: Delay of implementation timeline from 31 December 2025 to 30 September 2026;...
FCA updates on Consumer Duty requirements and focus areas
Following its call for input on the Consumer Duty requirements, the FCA has set out progress on the action it has taken so far, and further action it plans to take following stakeholder input. Priorities for...
Which? sends insurance super-complaint
Which? has made a super-complaint to the FCA about claims standards and acceptance rates in the home and travel sector. It feels that although the FCA has acknowledged the issues in the past, it has not done enough to...
Customers to receive £200m in motor insurance compensation
After the FCA found that some insurers were short-changing customers on stolen or written off vehicle claims, motor insurers have changed their settlement and compensation practices. The shift means that around 270,000...
FCA publishes market study on retail pure protection market
The FCA has published the first of two papers in its pure protection market study, on the structure of the UK pure protection market for retail customers. Key findings included: The UK pure protection market is highly...
PRA consults on further changes to insurance third-country branches policy
The PRA is consulting on further changes to its policy on insurance third-country branches. In 2024, the PRA revised its approach to third-country branches, introducing greater proportionality under the Solvency II...
FCA proposes changes to implement Berne Agreement
The FCA is proposing changes to several modules of the Handbook to implement the Berne Financial Services Agreement. The changes would: amend GEN to provide that a person will not be subject to the Handbook in...
Treasury Committee publishes insurance company letters
The Treasury Committee wrote to Admiral, Axa, Scottish Widows and Aviva asking questions designed mainly to establish whether they are treating customers fairly. Each insurer was asked specific questions which they had...
FCA publishes pension transfer process review
The FCA has published the results from its multi-firm review of life insurers’ pension transfer process. The review followed concerns that consumers were complaining of slow transfer times. The FCA surveyed 18...
PRA issues first reinsurer fine
The PRA has fined Barents Reinsurance S.A., London Branch, £1.79m for controls, governance and reporting failures. The fine is the first that the PRA has taken against a firm operating solely as a reinsurer. Barents is...
PRA confirms plans for faster ISPVs
The PRA has published its final policy on introducing a new accelerated pathway for UK ISPV applications in respect of some types of catastrophe bonds which will mean that applications meeting set conditions can be...
FCA invites UK-Swiss cross border business interest
The FCA is using the Berne agreement to start inviting firms to express interest in providing cross-border services between the UK and Switzerland. The agreement will benefit wholesale firms, with UK wholesale insurance...
FCA finds poor practice in home and travel insurance claims handling
The FCA has published analysis showing that increases in the cost of motor claims – including higher prices for cars, parts, labour, energy, and more complex supply chains – have contributed to premium...
FCA and ICO set out thoughts on Open Finance and Smart Data
The Digital Regulation Cooperation Forum has published the joint views of the FCA and the ICO on the technologies that are shaping Open Finance and the regulatory questions stemming from its development. APIs are likely to remain key to Open Finance and Smart Data as they facilitate real time, secure and trusted data exchange. So common standards and strong interoperability across sectors and providers will be essential. Another key driver could be AI which has the potential to carry out many key chores including automating data cleaning and preparation, enhance fraud detection, assess creditworthiness, deliver advice and recommendations and help consumers to open accounts and switch products.� However, with that comes risks, not least addressing questions around automated decision-making, transparency and explainability.
There is also the potential for DLT and smart contracts to play a role, which could, for example, automate administrative tasks, improve data integrity and security and track the flow of data for easier auditing. But, again, there are risks, such as it being potentially difficult to revoke access to or correct data, and it may be unclear who is responsible if things go wrong.
More generally, the key regulatory issues are:
balancing evolution of technology with fostering trust in new products and services and delivering good outcomes for consumers;
organisations ensuring they consider which lawful basis for processing data is most appropriate to enable the required data sharing;
what effective data minimisation would look like;
achieving transparency and consumer understanding when AI is used;
the role of regulators; and
embedding trust.
PRA updates on DyGIST
The PRA has confirmed that the 2026 Dynamic General Insurance Stress Test (DyGIST) will commence in May 2026. The PRA has set out the insurers it will invite to participate in the test, who together make up more than...
Mansion House speech supports Leeds Reforms
The Chancellor’s Mansion House speech, delivered in the evening of 15 July, highlighted many of the Leeds reforms, and set out the Chancellor’s key priorities. She highlighted: for capital raising, recent changes to the...
Treasury confirms plans to support captive development
HM Treasury has confirmed its plans to introduce a new UK captive insurance framework. The PRA and FCA have welcomed the confirmation, and will consult in summer 2026 on the rules and policies needed for an effective...
Treasury Committee to question insurance industry heads
The Treasury Select Committee will hold a one-off oral evidence session with the leaders of four major insurance firms on the state of the insurance industry. MPs are seeking to understand the main challenges, concerns...
Regulators and Lloyd’s agree streamlined managing agent authorisation process
The PRA, FCA and the Society of Lloyd’s have agreed to streamline the regulatory approval process for Lloyd’s managing agents. The changes follow a successful pilot operated in the Lloyd’s market in...
PRA writes to CROs on BPA transaction termination rights
The PRA has written to CROs of life insurers to set out its views on the potential risks that stem from using solvency-triggered termination rights clauses in bulk purchase annuity transactions. The letter follows a...
FCA consults on removing more returns and lifting ban on retail crypto ETN sales
FCA’s latest quarterly consultation proposes to: further streamline regulatory returns: it plans to: remove the GI pricing attestation and retail investment advisor complaints forms; reduce the frequency for...
FCA responds to Which? petition on insurance
Nikhil Rathi – FCA Chief Executive – has written a letter to Which?, after the organisation delivered a petition backed by 170,000 signatories, asking the FCA to toughen up its regulation of insurance...
FCA publishes 2024 Financial Lives survey
The FCA has published findings from its 2024 Financial Lives survey. Key findings from the latest report include: 1 in 10 people have no cash savings at all, and another 21% have less than £1,000 to draw on in an...
FCA consults on insurance rule simplification
The FCA is consulting on its promised plans to disapply its insurance conduct rules to dealings with large commercial customers and strip out other unnecessary requirements. In its wide ranging consultation the FCA...
FCA updates AR data
The FCA has updated its website with details on the appointed representatives population and activity. There are currently around 34,000 active ARs and around 2,500 principals – both figures showing a slight...
PRA speaks on safe growth of bulk purchase annuity deals
Gareth Truran of the PRA has spoken on what the PRA is doing to react to the high levels of BPA deals, and how it is looking to ensure market safety. He focused on 3 aspects of the PRA’s work: supporting...
FCA updates Regulatory Initiatives Grid
The updated Regulatory Initiatives Grid highlights many initiatives for various regulators relevant to the financial markets, including: during 2025: further action plan on FCA requirements in light of Consumer Duty...
PRA publishes Fees and Levies rates proposals for 2025/26
The PRA today published its CP 8/25, setting out its proposals for fees and levies for the current year.
The Annual Funding Requirement, to cover the PRA’s ongoing regulatory activities, is �328.7m, down �2.6m from last year; similarly, the Total Funding Requirement, which comprises the AFR and other levies, is down by �10.5m from last year, to �342.5m.
Points of interest from the consultation include an outline of how the PRA will be funding work on Future Banking Data, which will build on the Banking Data Review and the ongoing collaboration with the FCA around Transforming Data Collection.
Deletion of underused or duplicative templates will be consulted on, and a firm-facing portal will be developed, facilitating interaction with the PRA, presumably along the same lines as the recently-launched MyFCA.
Stephen WilsonPRA publishes Business Plan
The PRA’s 2025/6 Business Plan focuses on: significant work already completed on competitiveness and growth – such as the capital requirements to support SME and infrastructure lending, making the Solvency...
FCA publishes work programme 2025-6
The FCA has published its work programme for 2025-26, which builds on the 4 priority areas in its 5 year plan. Specific initiatives additional to those set out in the 5 year plan (which we summarised in this article)...
PRA consults on accelerating investment by insurance firms
The PRA has launched a consultation on reforming the Matching Adjustment application process, by introducing a Matching Adjustment Investment Accelerator (MAIA) permission to reduce barriers to investment by insurers...
FCA gives more detail on rule streamlining
Alongside its action plan, the FCA has published details of its “Consumer Duty rule review“. It has released a feedback statement following its call for input last year when it asked firms to tell it how...
FCA launches study into fair value in the pure protection market
The FCA has launched a market study into the effectiveness of the distribution of pure protection insurance products. While the FCA has seen indications of good outcomes for consumers, and low complaints figures, there...
FCA displeased at funeral provider Complaints Commissioner criticism
The FCA does not agree with the findings of the Complaints Commissioner that it did not identify significant risks in relation to Safe Hands funeral plan provider. The FCA did not acquire legislative powers to regulate...
FCA speaks on challenges of growth
Nikhil Rathi spoke to the ABI on how the FCA is looking to support growth while keeping strong consumer protection. He highlighted: the far reaching reforms to listing and prospectus rules the removal of the expectation...
FCA publishes skilled persons data for Q2 / Q3 2024
In the quarter ending September 2024, the FCA commissioned 14 skilled persons reports: 6 reports related to consumer investments, 2 to insurance, 2 to wholesale markets (buy-side) and 4 to wholesale markets (sell-side);...
ABI and MGA Association sign MoU
The Managing General Agents’ Association and the ABI have entered into a MoU to help drive collaboration in the insurance industry.
FCA publishes climate change “adaptation” report
The FCA has published a report requested by DEFRA, looking at the major issues that affect climate change adaptation in the financial services industry. Its research and its discussions with firms highlighted 3 major...
PRA speaks on stress testing and launches LIST 2025
The PRA has launched its life insurance stress test for 2025. The exercise will: assess sector and firm resilience to severe but plausible adverse scenarios; strengthen market understanding and discipline; and improve...
PRA outlines insurance supervision priorities for 2025
The PRA has published a Dear CEO letter to PRA-regulated insurance firms, setting out its supervision priorities for 2025. The key priorities reflect the ongoing developments in the context for life and general...
PRA sets out policy on solvent exit planning for insurers
Following a consultation, the PRA has published a policy statement on solvent exit planning for insurers. The PRA had proposed new rules and expectations that firms must prepare for a solvent exit as part of their...
PRA postpones launch of dynamic insurance stress test
The PRA has announced that it is postponing the launch of the dynamic general insurance stress test (DyGIST) until May 2026. The delay is intended to reduce the burden on general insurers in 2025 as they prepare to...
FCA updates perimeter report
The FCA has updated its Perimeter Report. The report highlights the FCA’s remit and powers, including the new Designated Activities Regime, and then lists the key areas of harm linked to the perimeter and some key...
FCA quarterly consultation includes PEMC limit increase
The FCA’s latest quarterly consultation includes proposals to: clarify some consumer credit product PSD reporting; increase the current £100 medical condition premium trigger that means firms must signpost...
ABI finds diversity improvements
The ABI has found the insurance and long-term savings industry is making progress towards better diversity, but that further development is hindered by a reduction in apprenticeship offerings across the sector.
BoE publishes system-wide stress test results
The BoE launched its first system-wide exploratory exercise of how a range of firms behave in stressed market conditions mid-2023, it has now published a final report on how the UK financial system would respond to a...
FCA says life insurers could do better on bereavement handling
The FCA has completed a multi-firm review of how life insurers handle bereaved customers. On the whole, it found they provide good service, but says they can improve on the time they take to settle claims – while...
Treasury consults on captive insurance approach
HM Treasury is consulting on a possible new approach to captive insurance companies. The market for captive insurance is fast-growing and despite the UK’s world-leading insurance sector, few captives are...
Mansion House speech heralds 5 priority growth areas
The Chancellor’s first Mansion House speech stressed the importance of the financial services industry to the UK and highlighted 5 priority growth opportunities on which the Government will focus its strategy:...
PRA consults on ISPV framework reform
The PRA is consulting on changes to the regulatory framework for Insurance Special Purpose Vehicles. It plans to create a new accelerated pathway for applications and to make it easier for a wider range of current...
PRA publishes final Solvency II review papers
The PRA has finalised and published the final pieces of its rules and policy materials that will replace the Solvency II assimilated law with the new “Solvency UK” regime. The PRA is working to replace all...
Insurance broker fined and banned for misuse of insurer funds
The FCA has fined the sole manager of Inspire Insurance Services Ltd over £1.1m and banned him from the financial services industry. Leigh Mackey had sole management control of the construction sector insurance broker...
FCA partially reopens commercial and bespoke insurance consultation
Following its consultation on the regulation of commercial and bespoke insurance business, which closed on 16 September, the FCA has partially reopened questions in the discussion paper to gather more feedback. The...