Our industry observations
At Complyport, we have observed a pivotal regulatory shift within the insurance sector. This is all but confirmed by the Financial Conduct Authority’s (FCA) Dear CEO letter to insurance firms in September 2023. The message was clear; significant failings within the insurance industry are all too common.
Increased FCA oversight
In response to these findings, the FCA has heightened its focus. The Regulator will be taking a proactive, intervention-led approach to test insurance firms’ compliance with the regulatory rules and regimes. According to our insurance experts, this promises a new era of FCA oversight.
These changes follow closely on the heel of Consumer Duty. With a spotlight on consumer protection, insurance firms are expected to prioritise good outcomes for their clients.
Heightened regulatory standards also extend to the common Appointed Representative (AR) model in the industry. Although stricter rules for principals and ARs were established in 2022, they are now subject to FCA testing. Principals and ARs must demonstrate their implementation of the new standards and their commitment to maintaining high standards while mitigating harm.
What to expect
Over the next two years, the FCA will closely test all types of insurance firms in the UK, to ensure they align with regulatory regimes, standards and expectations. Insurance firms, principals and ARs are now tasked with strengthening their controls, refreshing their compliance frameworks, and demonstrating their commitment to client-based, client-first practices.
Complyport’s Insurance Advisory and Actuarial Services
We have assembled our seasoned insurance professionals to launch a dedicated Insurance Advisory and Actuarial Services. Our dedicated service is designed, amongst other things, to guide you through the complexities of FCA compliance, ensuring you meet the regulator’s stringent requirements and changing expectations.
With each aspect of the insurance industry under the regulatory microscope, our insurance experts will help you stay ahead of the curve. Some of our services include:
- Fraud Risk Management: fraud risk assessments, fraud risk management program development, implementation of anti-fraud controls, fraud awareness and training, fraud investigation support, compliance audits and monitoring, regulatory advisory for fraud compliance, continuous fraud program improvement.
- Product Governance: gap assessment and analysis, implementation support to ensure compliance with regulations, Product Oversight and Governance (POG) policy support.
- IT Security, Cyber Security Operational Resilience: Operational Resilience policy integrating people, processes, and systems, IT and Cybersecurity audits, Business Continuity Plan development and support.
- Internal Audit: internal audit outsourcing, establishing an internal audit function.
- Financial Crime: Anti Money Laundering (AML)/Know Your Customer (KYC), Sanctions and PEP screening support, policy and procedure development, review and gap assessment, implementation support, ongoing screening and risk assessment, compliance function outsourcing.
- Consumer Duty: gap assessment and analysis, implementation support, Consumer Duty policy support.
- Actuarial Support Services: establish actuarial function policy and procedures, actuarial function outsourcing.
Our team can also assist you with FCA authorisation, regulatory reporting, thematic reviews, among other services. For detailed information on all our insurance consultancy services, please click here.
Get in Touch Now
The regulatory landscape for insurance firms is undergoing a change; compliance is not optional and the time for action is now.
Contact us today, our experienced team of dedicated consultants are committed to ensuring your firm remains up to date with the regulatory changes in the insurance sector.
Our full-service offering provides practical, effective and customer solutions to meet your specific requirements.
Complete the form below to book a FREE consultation.
About Complyport
Complyport is a market-leading consulting firm supporting the UK financial services industry for over 22 years. We specialise in providing Governance, Risk and Compliance services to support the regulated financial services industry to raise standards and thrive.
Complyport can assist with the preparation of a GAP analysis and impact assessment on the investment firm’s capital adequacy and risk management framework of the Company under the regulatory framework.
We specialise in supporting the UK financial services industry with compliance guidance, advice and best practice.
- Insurance Advisory and Actuarial Services
- CASS advice and protections of client assets
- Consumer Duty implementation advice
- Prudential support, IFPR, ICARA and financial resilience advice
- Operational resilience & Cybersecurity advice
- Financial Crime Risk and Compliance support
- Compliance managed services and resourcing compliance personnel
- Skilled Person Reviews and Regulatory Investigation
- Financial Promotions guidance, support, and management software solutions
- Comprehensive compliance work-flow management software
Complete the form below to schedule a FREE consultation.
