FCA imposes growth cap on Markerstudy following governance concerns

Markerstudy has confirmed a ”cap” on growth as concerns raised by the FCA are addressed.

According to the Financial Times, the regulator placed restrictions across Markerstudy’s regulated businesses, limiting customer numbers and requiring the group to maintain an agreed level of capital while it addresses the FCA’s concerns.

The measures apply to multiple entities within the group and have been recorded on the FCA register as voluntary requirements.

Markerstudy confirmed to Insurance Times that it had agreed the cap with the regulator, stressing that it remained solvent and well-capitalised.

A spokesperson for Markerstudy said: “Markerstudy has grown strongly in recent years and we maintain a close and collaborative dialogue with the regulators, part of which is agreeing appropriate levels of growth.

”As part of this, a cap has been agreed with the FCA that both parties consider appropriate and consistent with our strategy and customer-focused growth ambitions. We continue to operate at mandatory solvency margins and carry a buffer in line with regulatory requirements.”

The FCA restrictions were reported to stem from concerns linked to Markerstudy’s rapid acquisition-led expansion, weaknesses in leadership structures, governance arrangements and financial controls.

The FCA has declined to comment further on the measures.

Trickle down impact

Markerstudy, which is backed by Pollen Street Capital and Bain Capital, provides home, motor and pet insurance products to more than eight million customers in the UK through a wide portfolio of brands. These include BISL, which owns Budget and Dial Direct, as well as Atlanta Group, which was acquired by Marketstudy in a £1.2bn deal in 2024.

Notices on the FCA register state that the regulated firms must not exceed an agreed limit on customer policies without regulatory consent and must maintain a specified level of funds.

The Financial Times reported that the voluntary restrictions could complicate any future plans for a stock market flotation, although a person familiar with the group said it had no current intention to pursue an initial public offering.

The move comes as heightened regulatory scrutiny of the general insurance sector ramps up. The FCA has stepped up its oversight following concerns about customer outcomes, including issues highlighted by a super-complaint from consumer group Which? into travel and home insurance markets.