After a 12 months of upheaval for the UK insurance coverage sector in 2021, there appears little prospect of 2022 being any quieter.
From a regulatory perspective, 2021 started with the tip of the Brexit transition interval. And whereas companies working in UK insurance coverage markets have been insulated from the total impression of Brexit throughout 2021, that is set to alter in 2022. Solvency II reforms can now even be launched within the UK with out regard to the constraints of EU membership.
In the meantime, the FCA has launched into an bold transformation programme, placing shopper safety on the coronary heart of its give attention to changing into a “extra assertive, modern, and adaptable” regulator. The introduction of a brand new Shopper Obligation is predicted to deliver a couple of step change in how monetary sector companies behave. Different current developments carrying over into 2022 embody proposals to enhance regulated companies’ oversight of Appointed Representatives.
ESG stays, in fact, excessive on the agenda of companies and regulators worldwide, with growing engagement at Board and senior govt degree on a variety of points. Notably, COP26 introduced local weather develop into sharp focus. The PRA and the FCA are additionally trying to “speed up the tempo of significant change” in range and inclusion within the monetary companies sector. Additional exercise may be anticipated in relation to every of “E”, “S” and “G” throughout 2022.
Different present areas of focus are the federal government’s post-Brexit evaluate of the regulatory framework for monetary companies and the operational resilience of companies, together with the challenges introduced by Covid-19.
Our briefing, which may be discovered right here, seems to be at a number of the key regulatory developments which have taken place in 2021 and considers the outlook for 2022.