The U.K. Financial Conduct Authority (FCA) plans to update insurance regulations to cut outdated or duplicative rules. The goal is to reduce costs, support industry growth, and improve access to coverage as a risk management tool.
A key proposal introduces a new definition for large corporate insurance buyers, removing them from certain FCA rules.
The FCA said large firms can manage risk without the same regulatory oversight, unlike smaller commercial policyholders who still need these protections.
Another change removes the requirement for insurers to review product value every 12 months. Instead, insurers would decide how often to review based on each product’s specific risk and design.
The rules would also allow a lead insurer to take full responsibility for meeting FCA rules when multiple companies are involved in a product’s design. This simplifies compliance for shared insurance offerings.
The FCA also proposes to expand the use of custom contract exclusions. These exclusions, used for individual clients at their request, are already covered by existing product rules.
The update would make it easier for carriers and brokers to apply them.
Additional proposals include ending duplicate annual reporting and employer liability notification requirements. The FCA also plans to lower training obligations for employees in insurance and funeral planning roles.
Matt Brewis, FCA director of insurance, said the changes aim to lower regulatory costs and support the competitiveness of the U.K. insurance sector while keeping key protections in place for smaller clients. The consultation period runs until July 2.
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 U.K. insurance sector, while maintaining vital protections for smaller customers.
Matt Brewis, director of insurance at the FCA
The Association of British Insurers supported the plan. The group said the regulatory framework has long been too complex and welcomed efforts to balance consumer protection with economic growth and market health.
“We look forward to continuing to work with the FCA throughout its consultation process to achieve the right balance between consumer protection, economic growth and market integrity and help our members ensure good outcomes for customers,” ABI Director of Regulations David Otudeko said in an emailed statement.
