The UK's Financial Conduct Authority (FCA) published proposals to strip out ineffective, outdated or duplicated requirements from its insurance rulebook, aiming to simplify compliance while maintaining protections for smaller customers. A central proposal is a new definition to identify large commercial insurance customers that would fall outside the FCA’s conduct rules. Further measures include replacing the minimum 12-month product value review cycle with a risk-based approach set by firms, allowing a single lead insurer to take responsibility for compliance where multiple parties design a product, and broadening and simplifying the use of bespoke contract exclusions. The package also removes duplicative annual reporting and employer’s liability notification requirements, drops specified minimum training and development hours for insurance and funeral plan employees, and invites views on limiting the scope of some rules to UK customers. The consultation paper set 2 July 2025 as the deadline for comments.
Financial Conduct Authority 2025-12-05
UK Financial Conduct Authority consults on streamlining insurance rules and excluding large commercial customers from conduct requirements
The UK's Financial Conduct Authority (FCA) proposed revisions to its insurance rulebook to eliminate ineffective or redundant requirements, aiming to simplify compliance while safeguarding smaller customers. Key proposals include a new definition for large commercial insurance customers, a risk-based product value review cycle, and streamlined compliance responsibilities. The package also suggests removing duplicate reporting requirements and revising training mandates.