FCA to put spotlight on brokers in the UK

Major names such as Marsh and Aon to face investigation

FCA to put spotlight on brokers in the UK

Insurance News

By Terry Gangcuangco

The Financial Conduct Authority (FCA) recently released the findings of its asset management market study; now a report by the Financial Times says next in line for scrutiny are wholesale insurance brokers.

Part of a series of ‘sweeping’ market studies, the probe putting the spotlight on wholesale insurance brokers aims to ensure a well-working market – one which fosters innovation and competition. According to the report, the enquiry will be launched within the week.  

It also cited Aon, Marsh, and Willis Towers Watson as among the big players to be covered by FCA’s deep dive into the wholesale insurance broking market, which is estimated to be made up of around 160 organisations.

In April the industry watchdog said it will be looking at how firms’ pricing approaches and rating factors work in practice, as well as the drivers and the types of systems and data being utilised to decide final prices.  

“The FCA hasn’t had its competition powers long but it is really ramping up,” said White & Case competition lawyer Marc Israel, as quoted by the Financial Times. “The advantage here is that the FCA warned that this was coming, and so firms can have given some thought about potential remedies.”

The market study findings will help the watchdog decide whether and what additional action the UK’s wholesale insurance market needs.

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