The International Underwriting Association has welcomed a review of Consumer Duty regulation announced by the Financial Conduct Authority. The regulator is seeking feedback on plans to streamline burdens the rules place on companies. It has invited views on how to simplify the regime for the commercial insurance sector and whether there should be changes in the way clients are categorised.
Helen Dalziel, Director of Public Policy at the IUA, said: “This new review of Consumer Duty rules is a very positive move from the FCA. It clearly recognises the longstanding concerns there have been about the length and complexity of these regulations and is an important step in the right direction to reduce unnecessary costs and increase competitiveness.
“Over the past two years the IUA has gathered extensive feedback from its members on how Consumer Duty is operating in practice. We have had regular discussions with the regulator and, working with other London Market associations, have recommended areas to be addressed. We are pleased to see that these are highlighted in the FCA’s new consultation and look forward to concrete plans for reform being developed.
“Commercial wholesale insurance is quite different from retail insurance. Clients are generally sophisticated and well-resourced businesses and, therefore, as buyers of coverage they do not require the same level of consumer protection as individuals.”
