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Insurance regulation

All insurance companies, insurance intermediaries, and any others selling insurance products in the UK have to be regulated.


The regulation of the insurance industry is not and does not intend to be a no fail one. Regulation seeks to protect consumers. 

Rather than a tick-box reactive system that failed badly, the intent of the latest regulatory changes is to have a pro-active flexible system that heads off problems before they become disasters.


Prudential Regulation Authority

The Prudential Regulation Authority (PRA) is responsible for the day-to-day supervision of financial institutions. The PRA will not operate a zero failure regime in its approach to insurers. Failing insurers will be allowed to go bust in a way that avoids significant adverse effects on policyholders.


The PRA categorises Britain's insurers according to how big an impact their failure would have on the financial system.


The PRA is the overall supervisor of insurance companies.


The threshold conditions for regulated companies such as insurers being able to carry on business in the UK are-


  • Head office and senior management must be in UK.
  • Business must be conducted in a prudent manner with adequate financial and non-financial resources.
  • Must be fit and proper and appropriately staffed.
  • Must have adequate capital, liquidity, asset valuation, provisioning and reserving.

The PRA is the lead regulator for Lloyd’s of London, with the society itself and Lloyd’s managing agents regulated both by the PRA and FCA.

Financial Conduct Authority

The Financial Conduct Authority (FCA) seeks to protect consumers, promote competition and ensure integrity in markets.


It supervises all firms to ensure that business across financial services and markets is conducted in a way that advances the interests of all users and participants.


It has a single strategic objective of ensuring that the relevant markets function well.


The key FCA's objectives are:


  • To secure an appropriate degree of protection for consumers.
  • To protect and enhance the integrity of the financial system.
  • To promote effective competition in the interests of consumers.


The FCA focus is on:

  • Ensuring that insurer strategies are aligned with producing appropriate outcomes for consumers.
  • Tackling market abuse by taking strong enforcement action to deter future misconduct.
  • Ensuring a truly competitive insurance industry.


It has a product intervention power that enables it to act quickly to ban or impose restrictions on financial products.


It has powers of disclosure to publish details of warning notices issued in relation to disciplinary action.


It has powers to take formal action against misleading financial promotions and disclose the fact it has done so.


Lloyd’s of London

For Lloyd’s of London, the society itself and Lloyd’s managing agents are regulated both by the PRA and FCA.Members agents and brokers are solely regulated by the FCA.


Five key points

  • Regulation changed in 2013 from tick-box to pro-active.
  • The overall regulator for insurers is Prudential Regulation Authority (PRA).
  • The day-to-day regulator for insurers is Financial Conduct Authority (FCA).
  • The regulator of intermediaries is Financial Conduct Authority.
  • UK regulation works within a framework of European regulation.


Companies on this site

There are some specialist companies on this site based outside the UK and not regulated by the FCA.


We identify such companies on the company profile page with:


This company is not authorised in the UK by the Financial Conduct Authority, so customers have no protection under the Financial Services Compensation Scheme.


Being regulated does not prevent failure; the FCA is a regulator not a guarantor.


As we are an information site and not selling insurance, we do not in any way investigate, approve or regulate companies on this site.


If the FCA issues warnings or withdraws authorization from any businesses on the site, or if they go into administration or liquidation, we will withdraw companies immediately.


At all times we retain the right to remove any company at our discretion without giving reasons.


There are well-known insurers not on this site, simply because they do not sell direct to consumers.