'We're a different animal', FCA boss to tell insurers

The Financial Conduct Authority’ is a “very different animal to the Financial Services Authority”, its chief executive will today tell the ABI’s biennial conference, 100 days since the regulator began operations.

Its remit to cover competition issues is the single most significant change in its objectives as a regulator, and means, “we don’t just wait for problems before we try to promote competition in the markets we regulate”, Martin Wheatley will say.

“We’re not just asking: Is this product compliant? Does it tick every legal box? But actually: is the outcome good? Is the market competitive? And is fair treatment of consumers designed into products and culture?”.

He will also look to persuade the audience that successful regulation will help the best firms, products and services to thrive.

“A market that works well for consumers and for firms will be of benefit to everyone and to the UK economy. We want consumers to be in a position to drive healthy competitive markets so that they become the new normal.

“And where firms can profit from putting consumer first and whether they can’t, they exit the market without disrupting its integrity.”

Add-ons

Wheatley will also use his keynote speech to talk about the FCA’s market study of general insurance add-ons, often sold with bigger purchases like a holiday, a car or gadgets.

“We’ve called for evidence and approached a number of firms in the market for information. We are testing whether poor outcomes in add-on sales could reflect particular consumer behavioural traits and firms’ responses to them,” he will tell delegates.