Prudential boss Thiam warns of regulatory clampdown in UKGI

Prudential chief executive Tidjane Thiam (pictured) has warned that insurers in the UK will face a much tougher regulatory environment when the new Financial Conduct Authority (FCA) comes into existence on 1 April, City AM reports.

Speaking at the ABI’s motor conference, Thiam said: “The message coming from them, and we stay very close to them, is that we will see a more interventionist approach taken. We are also concerned about what they see as a mis-match between customer expectations and what our products deliver.

“General insurance activities will be under scrutiny from the new regulator in a way they have never been in the past.”

The comments echo ABI director general Otto Thoresen’s concerns, raised last year, when he warned of a “predator-prey” relationship between the FCA and the insurance industry.

Thiam welcomed the “pragmatic approach” of the Prudential Regulation Authority – the other element in the new financial system, which will ensure major banks and insurers remain financially stable, but said that the approach of the FCA would result in a “marked change in culture from recent years”.

“We will only be successful in managing the new conduct regime if we provide real value for our customers,” he added.