UK Insurance: FCA (26 September 2016)

OAC Digest
FCA, Life insurance

26 September 2016

Selected recent news from the UK's conduct regulator:

The majority of the FCA's systems are now operating again according to the FCA following a "physical hardware incident at a supplier's data centre" on 23 September.

On 22 September, Christopher Woolard, Director of Strategy and Competition at the FCA, spoke on the FCA's work around innovation in the financial services sector. They accepted 24, including 4 from insurance firms, of the 69 Sandbox applications to develop towards testing and are opening for a second round of applications in mid-November. Nine successful firms (out of 19 applicants) are working with the Advice Unit, "who will seek to provide regulatory feedback on the automated advice models they are developing." The FCA aims to share publicly lessons from the Advice Unit’s interactions with firms. The regulator is also planning to hold a second TechSprint event later this year on the theme of "unlocking regulatory reporting".

"Ever evolving and ever increasing" cyber risk remains a priority for the FCA according to the Director of Specialist Supervision at the FCA. In her speech of 21 September, Nausicaa Delfas said that the FCA is looking to "encourage firms to evolve and instil within them a holistic ‘security culture’ – covering not just technology, but people and processes too."

In the feedback statement on Call for Input on Big Data, the FCA, whilst finding broadly positive consumer outcomes resulted from the use of Big data, found areas of concern including some customers finding it harder to obtain insurance and charging certain customers more. The regulator will start work to look at pricing practices in a limited number of firms in the retail general insurance sector later this year and hold further discussions on data protection with a number of parties.  

David Gray

For more information
David Gray
Consultant Actuary

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26 June 2017

UK Insurance: FCA (26 June 2017)

Selected recent news from the UK's prudential regulator: Appointed Representatives follow up, call for input on access to insurance, cyber security guide and money laundering developments.