Welcome to the UKGI weekly regulation update service for Aviva ABC brokers

Context

On 14^th October 2025, the Gibraltar Financial Services Commission (GFSC) announced that Premier Insurance Company Limited (Premier Insurance) had entered administration.  The company is no longer able to pay claims. FSCS declared the firm in default on 14^th October 2025 and is stepping in to protect most of the policies Premier Insurance Company Limited sold to individuals and small businesses in the UK.  This failure relates specifically to the Gibraltar-based firm and not to the UK broker of a similar name or other UK-based firms with similar names.

Key points to note and next actions

• The FCA has announced that the joint administrators plan to end policies on 1 December 2025. This means customers must arrange alternative valid insurance cover for their vehicles.  The FSCS website has been updated to confirm this also.
• This could affect 16,000 customers and it is now stated that the last policies issued run until 31 January 2026.  Impacted customers will be entitled to 90% of the pro-rata return of premium from the FSCS.
• For all customers, their policies will not be renewed when they come to an end.  This means they will need to arrange new insurance before the current cover expires.
• Any UK intermediaries that have arranged cover with Premier Insurance will need to contact their clients directly to discuss options for arranging alternative cover.
• You can see the original Joint Administrators’ notification on Premier’s website.

Context

The FCA has published its retail intermediary market data for 2024, including an interactive analysis web page and an Excel spreadsheet of the relevant data tables.  The publications provide the FCA’s latest analysis of the mortgage, insurance and retail investment intermediary sector, using data from the Retail Mediation Activities Return (RMAR) for 2024.

Key points to note and next actions

• Revenue from non-investment insurance distribution in 2024 increased by 6.6% to £26.1 billion, compared to 2023.
• For non-investment insurance distribution and mortgage broking, commission remains the primary source of revenue, accounting for 82.6% for non-investment insurance distribution (down 0.4% from 2023) and 77.4% for mortgage broking (down 0.6% from 2023).
• Commissions, fees, other revenue and total regulated revenue have all continued to increase year on year in the on-investment distribution sector.

Context

The FCA has published its Q2 2025/26 (July to September) Authorisations Division operating service metrics.  The performance shows 13 metrics being ‘green’, 1 ‘amber’ and none ‘red’.

Key points to note and next actions

• The amber metric is due to some cancellation applications being determined after the statutory deadline because some firms had not yet taken the necessary steps to meet the FCA’s conditions for cancellation, such as resolving outstanding FOS complaints.  This demonstrates the importance of making sure that all loose ends (e.g., complaints, client money) are tied up before applying to de-authorise.
• 99.5% of applications across all metric areas were determined within the statutory deadline.

Context

The FCA has published a speech, delivered originally on 11 November 2025, by Dominic Holland, FCA Director of Market Oversight, at XLoD Global London 2025.  The speech sets out that the evolution of financial markets must continue to balance technological progress with the irreplaceable value of skilled professionals.

Key points to note and next action

• The integration of artificial intelligence and advanced analytics presents significant opportunities for innovation in financial markets.
• Despite technological advancements, human expertise and judgement remain essential to ensure that technology serves to enhance—rather than replace—the core strengths of the financial sector.
• The FCA has also updated its AI Lab web page with details of the first cohort of firms to be included in its ‘Supercharged Sandbox’

Context

The FCA, as an organisation, wants to learn lessons and continuously improve, and uses tools such as ‘lessons learned’ reviews, internal audits and scrutiny by the National Audit Office, to identify and address any areas where the FCA can improve its regulatory approach.

Key points to note and next actions

• For the most serious issues, the Financial Services Act 2012 (the Act) requires the FCA to publish a statement of policy setting out the matters it will take into account to decide whether it carries out an investigation into possible regulatory failure, and to give a report of the findings and recommendations to the Treasury for publication.
• The FCA has, therefore, reviewed its policy for investigating and reporting on regulatory failure to ensure it is fit for purpose given the time elapsed (last version published in 2013).
• The only substantive change from the policy published in 2013 is that the FCA has have revised the monetary thresholds for ‘significance’ of consumer detriment in line with inflation. It will continue to do this periodically.  It appears that there are no further changes
• The Statement of Policy is a 12-page document, which includes details of the relevant statutory provisions and information about investigating and reporting on regulatory failures, and which explains how the FCA will carry out investigations.

Context

As identity verification for Persons with Significant Control (PSCs) has now become compulsory as of 18 November 2025, Companies House has updated its guidance for Limited Companies, Partnerships and other company types to add details of its approach to non-compliance with mandatory identity verification under the ‘Enforcement’ section of the guidance.  For those who do not comply with identity verification requirements, Companies House will take action in line with the following approach and more broadly with its general compliance framework.

Key points to note and next actions

The approach to enforcement includes 4 broad categories:

• informing people of their obligations;
• nudging and guiding;
• dealing with non-compliance (including prosecution through court, referral to The Insolvency Service, and financial penalties); and
• addressing fraud and criminal activity.

Companies House has also updated the following web pages:

• Verify your identity for Companies House (adding a reminder that, from 18 November 2025, identity verification becomes a legal requirement. This date is not a deadline. It marks the start of a 12-month transition period, giving your company time to make sure all directors and people with significant control (PSCs) have verified their identity by their due dates.
• Verifying your identity for Companies House (added a link to the ‘Provide identity verification details for a PSC’ service, and added guidance to ‘What happens if you do not verify’).
• When you need to verify your identity for Companies House (added a link to the ‘Provide identity verification details for a PSC’ service).
• Companies House personal codes for identity verification (guidance added to ‘Where to find your personal code’).

Context

The Cyber Security and Resilience (Network and Information Systems) Bill proposes new laws to improve UK cyber defences and protect essential public services. On 12 November, the Bill was introduced to Parliament, with links added to the Parliament website confirming details of the Bill, as well as links to the Bill impact assessment, factsheets explaining the measures in the Bill, and supporting research.

On 18 November 2025, a link was added to the Regulatory Policy Committee’s publication stating they have rated the impact assessment on the Cyber Security and Resilience Bill as fit for purpose; green-rated.

Key points to note and next actions

The Cyber Security and Resilience Bill will reform and add to the existing Network and Information Systems (NIS) Regulations 2018, to increase UK defences against cyber-attacks. The Bill will deliver a change in the UK’s national security, making essential and digital services more secure in the face of cyber criminals and states that want to disrupt our way of life. The reforms plan to underpin greater economic stability, helping grow the economy for working people, by reducing business cost and disruption, and supporting investment.

Companies that fail to provide adequate cyber security for key UK infrastructure may face large fines under the new powers announced, as regulators will be given the power to hit companies with stronger, turnover-based penalties for serious cyber security breaches.  Harmful incidents will now be required to be reported within 24 hours.

The new rules mean companies providing IT and cybersecurity services to private and public sector bodies, the NHS being one example, will now face additional cyber regulation as the UK looks to step up protection against the increasing threat of cyber-attacks. They will be regulated by the Information Commissioner’s Office (ICO) as ‘registered managed service providers’ (RMSPs). 

Context

The House of Lords IRC, chaired by Baroness Taylor of Bolton, has issued a call for evidence for its new inquiry into the relationship between regulators and economic growth, in light of the Government’s ambition for regulators to support investment and innovation and drive growth.

Key points to note and next actions

The Committee is seeking evidence from regulators, economists, academics, industry experts, consumers, campaigners and other relevant stakeholders on a number of questions, including:

• What is the role of regulators in supporting and promoting economic growth?
• What barriers, if any, are regulators putting in the way of economic growth?
• How are regulators expected to balance the growth duty with their other objectives?
• Is it possible to make regulatory processes quicker and cheaper while maintaining the same level of protection to the public and the environment?
• Do regulators have the resources they need to be able to adequately support growth and innovation in general, and through specific measures such as proposed “fast lanes”?
• Can regulators work together where needed, and do they act to avoid duplication or inconsistency in how they regulate?
• Are regulators using data, digital technology and artificial intelligence to improve their efficiency and productivity?
• How do UK regulatory systems compare to others internationally? Who should the UK look to for good practice in regulatory design and operation?

Context

The ABI has announced that its annual detected fraud data reveals that £1.16 billion worth of fraudulent general insurance claims were identified in 2024 – a 2% increase on the £1.14 billion detected the previous year.

Key points to note and next actions

• The ABI has stressed that the fight against fraud must continue.
• Insurers uncovered over 98,400 fraud-related claims in 2024, a 12% rise from 88,100 in 2023.Motor insurance continues to be the area where insurers see the most illicit claims occurring, and they detected 51,700 motor scams worth £576 million. This is 5% more than in 2023 and represents 53% of the total number claims made throughout the year.
• Breaking motor insurance down, the value of fraudulent claims for domestic policies increased by £36 million (9%) year-on-year, while the figure for commercial policies remained relatively stable – rising by £1.7 million (1.3%). 
• Insurers also identified 18,700 deceptive property insurance claims worth £189 million – 11% more than the volume of claims detected during the previous year.
• If you suspect you have been a victim of insurance fraud, report your concerns to Action Fraud on 0300 123 2040, or at actionfraud.police.uk. Or you could contact the Insurance Fraud Bureau via its confidential Cheatline on 0800 422 0421 or at insurancefraudbureau.org.