The International Underwriting Association (IUA) has voiced its support for the Financial Conduct Authority’s (FCA) updated proposals aimed at streamlining insurance conduct rules, a move that could lessen the regulatory load on insurers. The London Market’s representative body formally responded to the FCA’s latest consultation, largely endorsing the revised plans, which incorporate feedback from IUA member companies from earlier consultations.
Despite the overall positive reception, the IUA highlighted several areas that necessitate further clarification and industry input to ensure practical implementation.
In a statement, Nafisah Hussain, senior public policy executive at the IUA, commented, “This latest consultation is another important step towards a more proportionate approach to regulating our sector. It recognises that the London Market is a distinct and specialist part of the insurance industry and that commercial clients should not be supervised in the same way as retail customers.
“Our members are keen to work with the regulator to ensure that the highest conduct standards remain, whilst unnecessary duplication is removed and greater flexibility is introduced. A successful conclusion to the current review will help make the London Market a more efficient and competitive environment.”
The IUA, representing its 81 member companies, submitted its comments on FCA consultation paper CP25/12. A key point of their submission is the call for enhanced clarity regarding the term “policyholder” within the FCA’s new definition. It noted that this clarification is crucial for accurately identifying commercial business that would be exempt from specific regulatory protections.
The association also raised concerns that the FCA’s proposals have not yet adequately addressed the role of managing general agents as agents of insurers. Furthermore, the IUA recommended that open market risks should be presumed bespoke unless there are explicit indications to suggest otherwise.
The FCA’s consultation period, which closed on July 2, 2025, is expected to lead to a policy statement confirming final rules in autumn 2025, marking a significant step in the evolving UK insurance regulatory landscape.
