Deskside Briefing: FCA CP25/12: Simplifying the insurance rules review of commercial insurance
If you are reporting on the FCA’s latest consultation – CP25/12: Simplifying the insurance rules – on the regulation of commercial and bespoke insurance, one key theme to watch is how the regulator is rethinking delegated authority arrangements and the role of intermediaries such as MGAs and brokers.
Please consider this Comment from Oliver Evans, Head of Growth UK at Root Platform for your editorial analysis, which is open for your editorial use:
———Comment from Oliver Evans, Head of Growth UK at Root———
“The FCA’s CP25/12 rightly highlights inefficiencies caused by duplicated compliance in delegated authority arrangements. Currently, MGAs and brokers acting under delegated authority must meet the same obligations as insurers, leading to duplication and inconsistency.
The regulator is exploring more pragmatic models, including designating a ‘lead’ firm. But since the FCA indicates that only insurers or Lloyd’s managing agents can take that role, distributors risk being boxed into insurer-led models, even when they may have the best knowledge of the product.This is where APIs can make a difference. By enabling data sharing, auditability and governance in real time, API-driven frameworks give distributors the technological means to support joint compliance, streamline oversight, and align with the FCA’s intent to reduce friction while fostering innovation.”
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