The Insurance Distribution Directive, fair value assessments, General Insurance Pricing Practices and, most recently, Consumer Duty are all ramping up the pressure under the FCA’s long-standing emphasis on Treating Customers Fairly. Elsewhere, insurers are tackling changes such as the ongoing adjustments to Solvency II and new operational resilience rules.
A recent survey by regtech firm, REG Technologies, highlights the increasing strain the market is under. Nearly seven in 10 general insurance compliance professionals (69%) believe their regulatory burden has increased in the past year, while two-thirds said red tape was slowing down the start of new business relationships.
This spotlight focuses on the increasing regulatory burden facing the insurance industry and to what extent firms themselves are to blame for failing to adopt modern technology and processes.