Insurance firms operating in the London Market have reported improved perceptions of their regulators, according to the latest Regulatory Sentiment Indices published by the London Market Group (LMG).
The survey, which canvassed views from 100 senior compliance and risk professionals at insurers and brokers, showed a 20-point year-on-year increase in sentiment toward the Financial Conduct Authority (FCA), reaching 91 out of 100 in 2025. Sentiment toward the Prudential Regulation Authority (PRA) rose 12 points to 73.
The findings indicate a more positive view of regulatory performance among London Market firms, which had previously expressed concerns about slow response times, limited market understanding, and a lack of clarity in regulatory expectations. The improvements come amid efforts by both regulators to support the UK’s financial services sector through greater transparency, engagement and operational efficiency.
Caroline Wagstaff (pictured above), CEO of LMG, said: “By directly surveying regulated firms, we can benchmark how the FCA and PRA are perceived within the London insurance market. While there is still progress to be made, these results suggest a stronger focus on collaboration and accountability from the regulators.”
The London Market, which comprises Lloyd’s of London and the wider company market, is a global hub for commercial and specialty insurance and reinsurance. It represents over £100 billion in annual premium income and supports thousands of underwriting, broking and support roles across the UK. Given its international reach, regulatory policy is viewed as critical to maintaining its competitiveness and ability to attract risk globally.
The sentiment indices are part of LMG’s broader push for performance metrics to assess how well regulators are delivering on their secondary objectives for growth and competitiveness, introduced under the Financial Services and Markets Act 2023.
The survey was conducted by Opinion Matters from May 8 to 13, 2025, sampling 50 firms regulated by the PRA and 50 by the FCA. The FCA cohort was evenly split between broking and underwriting businesses. The question set was adapted from the regulators’ own feedback forms to ensure comparability and statistical validity.
