The International Underwriting Association has expressed support for new proposals from the Financial Conduct Authority to reduce the regulatory burden on insurers, describing them as a positive step toward more proportionate supervision of the London Market.

The association submitted a formal response to the FCA’s consultation paper CP25/12, welcoming revisions that reflect earlier input from IUA member companies.

However, it also notes that some areas require further clarification and industry engagement to ensure they are practical in implementation.

“This latest consultation is another important step towards a more proportionate approach to regulating our sector. It recognises that the London Market is a distinct and specialist part of the insurance industry and that commercial clients should not be supervised in the same way as retail customers," said Nafisah Hussain, senior public policy executive at the IUA. “Our members are keen to work with the regulator to ensure that the highest conduct standards remain, whilst unnecessary duplication is removed and greater flexibility is introduced. A successful conclusion to the current review will help make the London Market a more efficient and competitive environment.”

In its response on behalf of 81 member companies, the IUA calls for greater clarity on the FCA’s revised definition of ‘policyholder’ to better identify commercial business excluded from certain retail protections. It also highlights the need for the regulator to recognise the role of MGAs as agents of insurers and recommends that open market risks be treated as bespoke unless there are clear indicators to the contrary.

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