The regulatory landscape could stifle new ideas.
New entrants to the insurance market could be deterred by the complexity of the regulatory landscape and operating requirements, which could lead to a lack of innovation and new ideas, according to Lamb Creative Marketing & Consultancy (Lamb), the strategic marketing, design and management consultancy.
Treating Customers Fairly, the Insurance: Conduct of Business requirements, and the move to principle based regulation, has had a fundamental impact on the way in which those in the market operate. These, together with changes to the insurance market cycle and wider distribution channels, could discourage new entrants with entrepreneurial ideas and service approaches. It is vital therefore, that entrants have access to specialist advice and support, in order to encourage innovative products and services.
Mark Huxley, director, Lamb Creative Marketing & Consultancy, said: “Regulation has had a fundamental and far reaching impact on the way in which the insurance market operates. Whilst this is welcomed, the industry needs to support and encourage new blood and innovative ideas in order for it to continue to thrive.”
