The Financial Conduct Authority (FCA) has reiterated its commitment to regulatory reform, consumer protection and industry growth, with chief executive Nikhil Rathi (pictured above) outlining key initiatives in a speech at the Association of British Insurers (ABI) roundtable.
Referencing calls for decisive action on regulation, Rathi said that the FCA is aware of the complexity of current rules and the need for a strategic approach to supporting growth. He also highlighted recent changes, including adjustments to listing rules and the Advice Guidance Boundary Review.
Rathi noted the FCA has recently published reports on wholesale insurance market reforms and simplified its handbook under Consumer Duty. It is consulting on easing requirements for large SME insurance, flexibilities in product governance and reducing compliance burdens. A review of training and competency rules, reporting cycles and international regulations is also underway, Rathi said.
There have also been efforts to streamline processes, including a new ‘My FCA’ portal, improvements to the FCA Handbook and reducing redundant data reporting, Rathi said, adding that the regulator acknowledges concerns over the pace of regulatory change and is considering balancing speed with longer transition periods.
“We are certainly willing to be creative and open to ideas on how we could be flexible,” Rathi said.
Rathi also reaffirmed the FCA’s focus on ensuring consumers access fair-value insurance products, saying that the agency continues to monitor motor insurance pricing and premium finance charges.
He reiterated the agency’s support of industry innovation, particularly in artificial intelligence for claims, fraud detection and risk modelling, engaging with firms through AI initiatives and regulatory sandboxes.
Kristy Lovegrove (pictured immediately above), group head of technology at Pro Global, welcomed the FCA’s focus.
“The emphasis on data quality and the responsible use of AI highlights a critical challenge for insurers, particularly when considering how AI can be integrated strategically within their business ecosystem,” Lovegrove said.
Rathi said the FCA is preparing to release its new five-year strategy, which will focus on consumer protection, economic growth, financial crime prevention and regulatory effectiveness.
He concluded by encouraging broad industry engagement to shape a regulatory environment that supports both consumers and economic growth.
“So, as we embark on our next five-year strategy, I hope we can draw in the widest possible input and insight to enable a thriving sector that benefits both consumers and the economy,” Rathi said.
