| Link(s): | The FCA and Practitioner Panel 2023/24 survey findings | FCA FCA and Practitioner Panel Survey 2023-24 Report |
Context
The FCA has published the findings of its recent FCA and Practitioner Panel 2023/24 survey which collates the responses from its information request sent to 25,000 firms in the spring of 2024. All general insurance intermediaries would have been invited to participate. The response rate overall was just 39%.
The FCA wants to act on the results found to get a better understanding of the issues affecting firms and assess whether any changes should be made. Firms’ satisfaction with their relationship with the FCA has increased since the last report, but bear in mind that only 39% of the firms surveyed responded. Over three quarters of those firms (the 39%) now report a ‘high’ level of satisfaction.
Key points to note and next actions
Only 29% of GI firms who did respond felt that the number of data and information requests they received from the FCA was ‘about right’. Comparing that with the overall results for ‘flexible’ portfolio (generally smaller) firms, it is likely that just under 70% of insurance firms thought that the information requests were ‘a lot’ or ‘more than necessary’. With an overall response rate of only 39%, perhaps the remaining 61% decided this was yet another FCA request for information that they did not readily have the resource to respond to. Potentially, that could mean that 88% of GI firms think the FCA is asking for too much information.
Areas firms have communicated that the FCA could improve are:
- doing more to facilitate growth and competitiveness;
- ensuring the FCA acts proportionately when introducing new initiatives and requests on firms; and
- improving the data collections process to reduce the regulatory burden on firms, demonstrating how the FCA are using the data firms provide.
The FCA has further work planned in the coming months. This will include work to simplify the FCA Rulebook, improve data collection processes and improve engagement with smaller firms (ensuring messaging is tailored for different audiences).