Wednesday, November 8, 2017 12.02PM / Mondo
Financial Conduct Authority (FCA) has today launched a market study to assess
how competition is working in the wholesale insurance broker sector. The FCA
wants to ensure that the sector is working well, and fosters innovation and
competition in the interests of its diverse range of clients.
London insurance market is one of the world’s leading centres for large scale,
complex commercial and specialist risks, controlling more than £68bn in gross
have been significant changes in the wholesale insurance sector in recent years
which has seen brokers developing new services and business practices. The FCA
plans to explore how competition is currently working and whether it could work
FCA believes that effective competition contributes to ensuring London remains
an international centre for insurance.
Woolard, FCA Executive Director of Strategy and Competition, said: “Given
the size of the wholesale insurance sector and the type of large scale risks it
covers, the way it functions can have a wide-ranging impact on the broader
economy. If businesses cannot get appropriate cover or pay more for services
than they should, it can impact on their ability to operate and grow”.
play an important part in the wholesale insurance sector ensuring clients get
appropriate coverage at good value. However, following significant changes in
the sector, we are looking at the dynamics to ensure competition is working
FCA today published
the Terms of Reference detailing the topics to be explored and
welcomes responses by 19 January 2018. The FCA aims to publish an interim
report in autumn 2018 which will set out its analysis, preliminary conclusions
and any potential solutions to address concerns.
Wholesale Insurance Broker Market Study2. The
London Market controls more than £68bn ($91bn) in gross written premium,
Market Group ‘London Matters’ 2017 (link is
1 April 2013, the FCA became responsible for the conduct supervision
of all regulated financial firms and the prudential supervision of those not
supervised by the Prudential Regulation Authority (PRA).
FCA has an overarching strategic objective of ensuring the relevant markets
function well. To support this it has three operational objectives: to secure
an appropriate degree of protection for consumers; to protect and enhance the
integrity of the UK financial system; and to promote effective competition in
the interests of consumers.
out more information about the FCA.