Latest news with #MattBrewis
Business Mayor
17-05-2025
- Business
- Business Mayor
Insurers win relief on commercial policies from UK regulator
Stay informed with free updates Simply sign up to the UK financial regulation myFT Digest — delivered directly to your inbox. Britain's financial regulator is to create a new definition of insurance for big companies, bowing to insurers' calls for more of their commercial policies to be excluded from costly conduct and compliance rules. The Financial Conduct Authority on Wednesday announced plans to scrap existing rules that cause confusion among insurers, push up insurance costs for companies and restrict the availability of cover for smaller groups. The regulator said the move was part of a wider set of proposals to remove 'ineffective, outdated or duplicated regulation' for insurers as it responded to calls by Sir Keir Starmer's government to do more to support UK economic growth and competitiveness. 'We have listened to industry and we are taking action — in doing so we will reduce regulatory costs and increase the competitiveness of the already world-leading UK insurance sector, while maintaining vital protections for smaller customers,' said Matt Brewis, FCA director of insurance. The updated definition for insurance 'contracts of commercial or other risks' will align the definition of larger businesses with the existing size thresholds determining which companies can appeal to the Financial Ombudsman Service. The regulator will continue to exclude certain types of insurance from its conduct rules, such as aviation and maritime policies. But these exclusions will not apply to retail consumers purchasing such cover, introducing a distinction between cover for container ships and canal boats or between jumbo jets and small private planes. Read More L&G appoints new asset management boss in drive for growth UK insurers writing policies for customers and risks located entirely overseas would also be excluded from conduct and compliance rules to avoid duplication and conflict with foreign countries' regulations, the FCA said. The FCA predicted the changes would 'encourage new entrants into the market' and said they 'should deliver benefits to commercial customers through enhanced competition and through new, innovative services'. The changes 'could lead to worse outcomes' for small and mid-sized companies whose insurance contracts were no longer covered by the conduct and compliance rules, the FCA said. But it added that they were judged to have 'sufficient resources to protect their own interests' and would still benefit from some of its high-level rules. Executives in the UK commercial insurance sector, which takes in about £95bn in annual premiums, have long called for changes to rules that they say too often impose the hefty compliance requirements of retail consumers on contracts for big corporate customers. 'A new definition of large commercial insurance customers is particularly welcome,' said Caroline Wagstaff, chief executive of the London Market Group, which represents businesses across the insurance industry. Recommended 'If applied consistently across the rule book, it will allow the regulator to focus on protecting the retail and SME consumers who really need it, while reducing unnecessary regulatory requirements for corporate clients,' she said. The FCA said the introduction two years ago of its consumer duty rules, which require companies to ensure customers receive a good outcome, meant it could scrap overlapping rules, including a requirement for insurers to review the value of their product every year. Read More Car insurance firms agree to crack down on 'poverty premium' Rolling back the scope of the consumer duty was a central plank in the lobbying agenda of the British Insurance Brokers' Association, which is holding its annual conference on Wednesday in Manchester.
Yahoo
14-05-2025
- Business
- Yahoo
FCA unveils plans to remove ‘outdated or duplicated' insurance rules
The City regulator is proposing to strip 'outdated or duplicated' requirements from its insurance rules, to help reduce costs for firms and encourage competition in the sector. The Financial Conduct Authority (FCA) said the UK's insurance market could benefit from simpler, more straightforward requirements. Proposals include no longer requiring companies to review the value of their product at least every 12 months; instead, they would use the risks and characteristics of each product to decide how often they review them. The regulator also plans to give firms flexibility to appoint one lead insurer to comply with its rules in situations where more than one party is involved in designing the insurance product. Specified minimum hours of training and development required for insurance and funeral plan employees would also be removed under the proposals. Changes could support lower costs and wider access for the businesses and consumers who rely on insurance to manage risk, while maintaining appropriate levels of protection, the regulator said. It is also proposing to create a new definition to identify big commercial insurance customers who should not be captured by its conduct rules. This would ease the burden on firms insuring larger businesses that can manage risks independently, while protecting smaller commercial customers, the FCA said. The consultation document said: 'Given the global nature of the commercial market, it is important that our rules deliver proportionate regulation that promotes effective competition. 'We also want to ensure that our rules advance our secondary objective to facilitate the international competitiveness and growth of the UK economy, as far as reasonably possible.' Matt Brewis, director of insurance at the FCA, said: 'We are stripping back our insurance rule book by removing ineffective, outdated or duplicated regulation, as part of our drive to become a smarter regulator and support growth. 'We have listened to industry and we are taking action. In doing so we will reduce regulatory costs and increase the competitiveness of the already world-leading UK insurance sector, while maintaining vital protections for smaller customers.' The consultation follows the FCA's commitment to withdraw more than 100 pages of 'outdated' guidance in a bid to streamline rules, reduce burdens on businesses, and improve outcomes for consumers after the introduction of the Consumer Duty. The Consumer Duty requires financial firms to put customers at the heart of what they do, including in the design of their products and in their communications with customers. The UK Government has put emphasis on streamlining regulations as part of its drive for economic growth. The FCA wants to hear feedback on the proposals by July 2 2025. David Otudeko, director of regulation at the Association of British Insurers (ABI), said: 'The overly complex regulatory system has long been a concern for the industry. The FCA's focus on easing some of this burden, to simplify rules and create a more straightforward system, is welcome. 'We look forward to continuing to work with the FCA throughout its consultation process to achieve the right balance between consumer protection, economic growth and market integrity, and help our members ensure good outcomes for customers.'
Yahoo
13-05-2025
- Business
- Yahoo
FCA unveils plans to remove ‘outdated or duplicated' insurance rules
The City regulator is proposing to strip 'outdated or duplicated' requirements from its insurance rules, to help reduce costs for firms and encourage competition in the sector. The Financial Conduct Authority (FCA) said the UK's insurance market could benefit from simpler, more straightforward requirements. Proposals include no longer requiring companies to review the value of their product at least every 12 months; instead, they would use the risks and characteristics of each product to decide how often they review them. The regulator also plans to give firms flexibility to appoint one lead insurer to comply with its rules in situations where more than one party is involved in designing the insurance product. Specified minimum hours of training and development required for insurance and funeral plan employees would also be removed under the proposals. Changes could support lower costs and wider access for the businesses and consumers who rely on insurance to manage risk, while maintaining appropriate levels of protection, the regulator said. It is also proposing to create a new definition to identify big commercial insurance customers who should not be captured by its conduct rules. This would ease the burden on firms insuring larger businesses that can manage risks independently, while protecting smaller commercial customers, the FCA said. The consultation document said: 'Given the global nature of the commercial market, it is important that our rules deliver proportionate regulation that promotes effective competition. 'We also want to ensure that our rules advance our secondary objective to facilitate the international competitiveness and growth of the UK economy, as far as reasonably possible.' Matt Brewis, director of insurance at the FCA, said: 'We are stripping back our insurance rule book by removing ineffective, outdated or duplicated regulation, as part of our drive to become a smarter regulator and support growth. 'We have listened to industry and we are taking action. In doing so we will reduce regulatory costs and increase the competitiveness of the already world-leading UK insurance sector, while maintaining vital protections for smaller customers.' The consultation follows the FCA's commitment to withdraw more than 100 pages of 'outdated' guidance in a bid to streamline rules, reduce burdens on businesses, and improve outcomes for consumers after the introduction of the Consumer Duty. The Consumer Duty requires financial firms to put customers at the heart of what they do, including in the design of their products and in their communications with customers. The UK Government has put emphasis on streamlining regulations as part of its drive for economic growth. The FCA wants to hear feedback on the proposals by July 2 2025. David Otudeko, director of regulation at the Association of British Insurers (ABI), said: 'The overly complex regulatory system has long been a concern for the industry. The FCA's focus on easing some of this burden, to simplify rules and create a more straightforward system, is welcome. 'We look forward to continuing to work with the FCA throughout its consultation process to achieve the right balance between consumer protection, economic growth and market integrity, and help our members ensure good outcomes for customers.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
