UK Insurance: FCA (28 November 2016)

OAC Digest
FCA, Governance, risk & compliance, IFAs, Life insurance

28 November 2016

Selected recent news from the UK's conduct regulator:

[Pensions] On 25 November, the FCA consulted on requiring firms to inform consumers how much they could gain from shopping around and switching provider before a potential annuity purchase. With regard to enhanced annuities, it is interesting to note that the FCA "have begun other work to encourage annuitants to select an appropriate type of annuity" and the paper's "principal aim is not to help consumers who are eligible for an enhanced annuity to select one rather than purchasing a standard annuity." At present, they simply seek to enable a valid comparison.   

On 23 November, the FCA published Occasional paper 23 Full disclosure: a round-up of FCA experimental research into giving information. This demonstrates the FCA's commitment to using behavioural economics to inform regulation.

On 22 November 2016, Andrew Bailey talked about why Big data matters, noting the ability to refine risk and incentivise an individual's behaviour, the need to avoid exploiting knowledge of an individual's behaviour and conflicts from different public policy objectives. The Chief Executive of the FCA also spoke about issues in the review of FSCS pooling on the agent side. 

David Gray

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David Gray
Consultant Actuary

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