In this edition of the EY Global Insurance Regulatory Series, host Bob Stein sits with Otto Thoresen, Director General of the Association of British Insurers, for an in-depth discussion on the UK’s Financial Conduct Authority (FCA) and the global trend toward greater regulation of insurance products and sales practices.
The FCA began on April 1, 2013 with its original focus being that of the protection of consumers. The FCA is focused on the creation of a more effective marketplace that makes competition work, and according to Mr. Thoresen, the biggest challenge ahead is the “sheer volume of activity and new initiatives emerging from the FCA. At last count, there were some 23 thematic reviews going on.” The industry is responding slowly, according to Mr. Thorensen, as it tries to understand what this new conduct regulator is all about. Mr. Thoresen, also discusses the sales process and how the FCA will impact product design and pricing. Overall, he feels that the FCA will be very positive for the relationship between the industry and its customers.