Why regulatory alignment is a step in the right direction

It’s no secret that Biba has been calling for regulatory change, it’s been a leading issue in our Manifesto for a decade. 

To be clear: we don’t want a reduction in consumer protection. What we’re asking for is a reduction in frictional costs and improvements in the efficiency of regulations, while maintaining consumer protection. CP25/12 and PS25/21 were a welcome turning point. 

Then, when the Financial Conduct Authority released its first Regulatory Priorities 2026 – Insurance Sector report last month, I finally felt a real sense of alignment. 

It feels like the momentum that has been growing over the last few years between Biba and the regulator is delivering tangible results.

I’m optimistic our bid to include the new Bill in the King’s Speech in May has momentum, which is crucial to implementing reforms to the Financial Ombudsman Service, changes to the Senior Managers and Certification Regime, shorter regulatory authorisation periods and the new ‘Gateway to Growth’ provisional licensing system.

The FCA’s report outlines four key priority areas, and these are all areas that we’ve been working collaboratively on with them – they are sensible priorities that will make a difference. 

It is positive to see the regulator set out its aims which align so well with the members’ issues that we have set out in our Manifesto. This convergence of common goals on key issues is a significant step for the sector as a whole, and importantly for customers.

For those who haven’t read the detail, the FCA outlined that it is ‘transforming’ the way it supervise including ‘a more risk-based approach for the largest firms’ and ‘making data collection more targeted and efficient’. This is what our members, who are low risk, need.

Turning to its specific priorities, the FCA will focus on improving consumer experiences, including work on claims handling in the home and travel sectors. 

This is an important area that has been the focus of much attention recently, and a main talking point of our recent small brokers advisory board meeting. 

The FCA has outlined its key expectations on this to be around clear communication, prompt fair and transparent claims handling and monitoring outcomes to evidence Consumer Duty compliance. 

This feels like the right balance to ensure that consumers have protection, and the right outcomes are achieved. We believe that this can be delivered through the Consumer Duty without the need for additional rules.

Increasing access to insurance is another priority, and again, we fully support this. 

This has been a priority of Biba’s ever since we started our find insurance service 20 years ago. But more protection gaps need to be closed to give customers financial protection, providing them with confidence to take measured risk, which aligns with our manifesto aim of improving economic resilience for us all.

Supporting firms’ use of AI, and understanding barriers to cyber insurance are also amongst their priorities. We all see how quickly AI and technology move, so regulatory support in this area to give consumers confidence will further support growth and innovation. 

Our members and Government departments raise these areas regularly with us, and Biba plans to launch an AI academy for members and an Accredited Cyber Insurance Directory to support members in this area.

The final priority from the FCA is ‘Simplifying insurance rules whilst maintaining consumer protections’, this is top priority for our members. 

It's the outcome of the collaborative approach that we've established with the FCA’s team. They've listened, and we've worked with them and members to identify rules that can be reduced without reducing consumer protection. 

Our compliance team have a list of ICOBS and PROD rules ripe for reform.

The FSA started regulating insurance in January 2005, it, has taken 21 years to get to this point, where I feel that the industry and the regulator are now aligned with common aims.

The next step is to push for a new Financial Services Bill to serve as the legislative vehicle that will allow the regulatory reforms needed to progress through parliament. 

It’s a big ask from Government, with whom we are in regular touch on this. I am pleased to sit on the City Minister’s Trade Association Advisory Group at HM Treasury, which aims to deliver the Leeds Reforms and Financial Services Growth and Competitiveness Strategy.

I’m optimistic our bid to include the new Bill in the King’s Speech in May has momentum, which is crucial to implementing reforms to the Financial Ombudsman Service, changes to the Senior Managers and Certification Regime, shorter regulatory authorisation periods and the new ‘Gateway to Growth’ provisional licensing system.

This latest FCA report is delivering us a whole new approach to regulation. The previous seemingly relentless introduction of new rules has slowed, there is a welcome change in tone and style, along with a focus on supervising.

Biba can and will work with this new approach, and who knows, maybe we won’t even need to mention regulation in our 2027 Manifesto.