Commercial Awareness Compass
The UK’s insurance sector is facing one of its most significant regulatory shifts since the 2008 financial crisis. The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) are consulting on proposals to simplify rules, speed up approvals, and free up capital to make the UK a more competitive financial hub. But these changes come with risks.
The regulators are juggling conflicting priorities: protect consumers or unlock growth? If capital requirements are eased, insurers could invest more freely, but would that leave policyholders exposed? And how far can regulators go without weakening market confidence?
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