No insurance firms included as FCA fines fall to lowest level – Hackford

No insurance firms or insurance-related entities have been included in FCA fines for the first half of 2025, as overall fines from the regulator hit their lowest level since the FCA was created in 2013. 

According to data analysis from Hackford, the FCA had issued £12.3m in fines to regulated entities as of 30 June 2025, putting the year on track for a total of around £25m.

This figure would put total yearly fines totals far below the previous low of £35.3m in 2016 and last year’s figure of £176m. 

Of the six fines issued in 2025 so far, none were insurance related. This mirrored 2020 and 2023, when insurance firms also avoided regulatory fines.

Since the FCA was created in 2013, 12 fines have been issues to insurance companies that are still actively trading, totalling £347m. 

The largest single fine came to £90.7m and was issued to Lloyds Bank general Insurance and related entities in July 2021 for failures in communications around home insurance renewals between 2009 and 2017. 

Emphasising collaboration

Record lows in fines issued to regulated entities follow on from FCA communications emphasising that it will focus on supporting firms to grow by removing unnecessary regulations. 

In March, chancellor Rachel Reeves met regulators, including the FCA, to outline her “radical plan to cut red tape” in pursuit of this goal. 

Also in March, the regulator announced that it had no plans to take forward its proposals on regulatory D&I proposals and scrapped proposed “name and shame” disciplinary practices for more companies.

Commenting on the publishing of an FCA five-year strategy document in the same month, FCA chair Ashley Alder explained: ”We want to deepen trust in financial services and shift our collective attitude across financial services to risk.

“Too often the focus has been on the risks of a decision taken rather than the lost opportunity of taking none. We want to change that so we can spur growth and improve lives.”