The UK’s Financial Conduct Authority (FCA) has revealed plans to revise its insurance regulations to remove “outdated or duplicative requirements” from its rule book.

The regulator aims to reduce costs and improve access to insurance, while ensuring that “appropriate” protection levels are maintained.

The proposed changes includes a “new definition” to classify large commercial insurance customers, exempting them from certain conduct rules.

This aims to reduce the regulatory burden on insurers of large businesses that are capable of managing risks, without affecting protection for smaller operators.

The FCA suggests allowing companies to determine the frequency of product value reviews based on the products risks instead of a fixed annual schedule.

Additionally, in cases where multiple parties are involved in product design, companies could appoint a single lead insurer to ensure rule compliance.

The revisions aim to simplify “bespoke contract exclusions” for insurers and remove annual reporting and employer’s liability notification requirements.

Furthermore, the proposal removes the minimum training and development hours for insurance and funeral plan employees.

This applies to insurers, Lloyd’s managing agents, insurance intermediaries and funeral plan providers.

FCA insurance director Matt Brewis said: “We are stripping back our insurance rulebook by removing ineffective, outdated or duplicated regulation, as part of our drive to become a smarter regulator and support growth.

“We have listened to industry and we are taking action – in doing so we will reduce regulatory costs and increase the competitiveness of the already world-leading UK insurance sector, while maintaining vital protections for smaller customers.”

The FCA is seeking feedback on these proposals until 2 July 2025, with a policy statement expected to follow in the third quarter of 2025 (Q3 2025).

In a letter to the prime minister, the FCA expressed its intention to reduce conduct rules for wholesale insurance in January this year.

Additionally, the Prudential Regulation Authority of the UK initiated a consultation last month to lower investment barriers for insurance companies.

"UK financial regulator proposes revisions to insurance rule book " was originally created and published by Life Insurance International, a GlobalData owned brand.

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