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| A smarter approach to communicating our regulatory priorities | FCA Regulatory Priorities reports | FCA Regulatory Priorities: Insurance report |
Context
We reported last week that the FCA launched the first of its new Regulatory Priorities reports, starting with the insurance sector. This update provides an overview of the FCA’s priorities for the sector for 2026.
Key points to note
For the insurance sector, the key areas of focus for firms are:
Improving consumer understanding, claims handling and service quality (this is the main priority affecting most firms)
- Comply with the Consumer Duty where it applies.
- Be clear: communicate clearly with consumers, so they understand what their insurance covers.
- Respond promptly, fairly and transparently to claims and queries, and deliver good outcomes when customers claim
- Test outcomes: monitor thattheir products and services deliver what has been promised to consumers
Increasing access to insurance (highlighting delivering good outcomes to vulnerable customers)
Supporting growth and innovation (supporting firms’ use of AI in insurance, but firms must monitor outcomes for consumers closely. The FCA will be reviewing cyber cover.)
Simplifying regulation
Reliance on the Consumer Duty to simplify rules:
- Consult on disapplying the Consumer Duty to non-UK business and review the international scope of ICOBS and PROD 4.
- Consult on further simplification of insurance rules and reporting, including GAP insurance rules.
- Review the value measures rules.
- Work with the Treasury and the PRA to review the Senior Managers and Certification Regime to halve its regulatory burden.
The report sets out, at pages 14 to 16, the FCA’s timeline of work for 2026 in relation to the above priorities.