House of Lords launches inquiry into commercial insurance regulation

The UK parliament’s House of Lords Industry and Regulators Committee has launched an inquiry into the regulation of the commercial insurance and reinsurance industry to evaluate the system’s impacts on the competitiveness of the London market.

The inquiry aims to “explore the extent to which regulatory policy is well-designed and proportionately applied, and the possibilities for optimising policy following Brexit.”

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It will also assess the roles of the Bank of England and the Financial Conduct Authority (FCA), and the appropriateness of regulation relative to the risks posed by the London marketplace, including the content of the regulations and their implementation and application.

Among the questions the committee’s call for evidence aims to address are:

• Is the UK regulatory framework appropriate for the commercial insurance and reinsurance sectors?
• To what extent do the Bank of England and Financial Conduct Authority apply and interpret regulatory policy in these areas in a proportionate manner and strike the right balance between regulation and competitiveness?
• How do the activities of the UK’s financial regulators affect the ease of carrying out commercial insurance and reinsurance business in the UK? What impact does this have on the availability and cost of insurance cover in the UK?
• What is the status of the London market’s global competitiveness, and how is this impacted by different regulatory approaches in other territories?
• What improvements could be made to the regulation of commercial insurance and reinsurance in a post-Brexit context?

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The committee is asking for written submissions from industry participants, organisations, and interested parties, which can be submitted to the UK parliament’s official website on or before February 11.