’We are stripping back our insurance rulebook by removing ineffective, outdated or duplicated regulation,’ says director
The FCA has outlined plans to ditch what it claims are “outdated or duplicated requirements from its insurance rulebook”.
The regulator, which announced the move as thousands of delegates gathered for the first day of the 2025 Biba Conference (14 May 2025), said the proposed changes could support lower costs and wider access for businesses and consumers.
Among plans include creating a new definition to identify large commercial insurance customers who should not be captured by its conduct rules.
“This would ease the burden on firms insuring larger businesses that can manage risks independently, while protecting smaller commercial customers,” the regulator said.
Other proposals include:
- No longer requiring firms to review the value of their product at least every 12 months. Instead, firms would use the risks and characteristics of each product to decide how often they review them.
- Giving firms flexibility to appoint one lead insurer to comply with its rules in instances where more than one party is involved in designing the insurance product.
- Broadening the scope of bespoke contract exclusions and making them easier for all insurers and brokers to use. Bespoke contracts are built to suit one customer upon that customer’s request, which means they automatically have the protections product governance rules provide.
- Getting rid of duplicative annual reporting and employer’s liability notification requirements.
- Removing the specified minimum hours of training and development required for insurance and funeral plan employees.
‘Listened to industry’
Matt Brewis, director of insurance at the FCA, said: “We are stripping back our insurance rulebook by removing ineffective, outdated or duplicated regulation, as part of our drive to become a smarter regulator and support growth.
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“We have listened to industry and we are taking action - in doing so we will reduce regulatory costs and increase the competitiveness of the already world-leading UK insurance sector, while maintaining vital protections for smaller customers.”
As part of its plans, the regulator is also inviting views on whether it should limit the scope of some rules to UK customers.
The FCA is asking for comments on these proposals by 2 July 2025.
In response to the plans, Graeme Trudgill, Biba chief executive, said: “We are delighted with the FCA’s latest consultation and support the proposals, which address many of Biba’s key regulation points from our manifesto.
“We have long been in discussion with the FCA about the changes that are needed to make regulation more proportionate for insurance brokers and this is certainly a very positive step forward.
“The FCA is working constructively with us, our board and our members. In the last year they have increased their engagement with Biba and our insurance broker members, for example by joining our tour of the regions, and they are now acting on our suggestions and the feedback from Biba members.”
His career began in 2019, when he joined a local north London newspaper after graduating from the University of Sheffield with a first-class honours degree in journalism.
He took up the position of deputy news editor at Insurance Times in March 2023, before being promoted to his current role in May 2024.View full Profile
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