Kate Collyer, Chief Economist at the FCA, has hinted that the current pricing remedies could be just the start of a wave of regulation. Are insurers prepared for what’s coming?
By Ben Johnson, Managing Director of the Insurance practice, Sheffield Haworth. With contributions from several key insurance insiders off-the-record to gauge the industry’s response. The article also contains contributions from James Yerkess from Hal Consulting and Ian Hughes from Consumer Intelligence.
Yerkess has done a lot of work on value and pricing regulation within the banking sector. Hughes has carried out decades of research into consumers’ attitudes to insurance.
The FCA’s current pricing remedies are about much more than just pricing. The regulator has made it clear that insurers must become more customer-centric across all parts of their business and all parts of the distribution chain. Here’s what insurers need to know now so they can prepare.
All the signs point to the FCA’s current push on pricing remedies being the start of a long, evolutionary wave of regulation to nudge the insurance industry towards becoming more consumer-centric and value-focused.
The recent history of similar regulation in banking suggests what the roadmap may look like. Insurers will have to review not just pricing, but also their products, their use of consumer data, how they communicate to consumers, their claims service, and even their business models.
Here’s what they all have to say about what the FCA wants to achieve. As well as what forward-thinking insurers can do now to get ahead of the regulatory curve.