Context
The FCA has published a speech given by Sarah Pritchard, FCA Deputy CEO, at the ABI Conference 2026 in Westminster, in which she has said that the home, motor and travel insurance markets have “room for improvement” but has ruled out any wide-ranging action. Pritchard makes the point that the UK Customer Satisfaction Index shows the insurance industry understands and cares for its consumers but also that, for markets to continue to grow, firms must feel confident enough to explore new ways to unleash innovation.
Key points to note and next actions
- Insurance helps consumers navigate their financial lives and supports businesses and the economy. It’s essential it succeeds and thrives.
- Innovation is crucial to the industry’s success, and the FCA is playing its part by providing the necessary support and tools.
- The FCA will remain focused on driving better consumer outcomes, but is also championing flourishing wholesale markets.
- Consumer trust is low but can be built. This will take greater transparency and adherence to the standards set by the Consumer Duty.
- The speech outlines the nature of FCA support to allow firms to innovate, and sets out what the FCA sees as its role.
- Pritchard outlined the importance of ‘bringing the customer with you’ and discussed how the FCA will be ‘looking ahead’ for consumers and wholesale markets.
- Pritchard wants firms to engage with the FCA, early and often; in return the FCA will be clear about its priorities, and will be on hand with the practical support firms need to innovate with confidence.