The latest from the IUA for you;
New plans to reduce the regulatory burden on insurers have been backed by the International Underwriting Association (IUA). The representative body for companies in the London Market has submitted a formal response to the Financial Conduct Authority (FCA)’s latest consultation on simplifying insurance rules. It supports the revised proposals, which take on board comments made by IUA member companies during previous consultation exercises.
Some areas, however, still require clarification and further input from the industry to ensure they work in practice.
Nafisah Hussain, Senior Public Policy Executive at the IUA, said: “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 has submitted comments on FCA consultation paper CP25/12 on behalf of its 81 member companies. It calls for greater clarity around the term ‘policyholder’ in the FCA’s new definition to identify commercial business that would be excluded from certain regulatory protections.
The association also raises concerns that the FCA has not yet adequately reflected the role played by managing general agents as agents of insurers. Another recommendation is for open market risks to be treated as bespoke unless there are clear indicators to the contrary.
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