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25 January 2023

FCA Raises Concerns Over Consumer Duty Implementation

The regulator has said there is a real risk that some firms may not be ready for the implementation deadline

Today’s multi-firm review from the FCA on the progress made in implementing Consumer Duty should be of real concern to the insurance industry.

The regulator has highlighted a number of areas where insurers are falling behind their expectations and it has raised some very real concerns that insurers may not be ready in time.

It has also raised the fact that it believes some insurers may also struggle to effectively embed Consumer Duty within their business without a change in approach.

Consumer Duty Under the Magnifying Glass: What do the numbers tell us?

The idea of Data Strategies was explicitly referred to in this review for the first time, and it expressed concern from the regulator that insurers were not properly considering their data requirements when it comes to monitoring customer outcomes.

The idea that insurers can ‘get by’ with existing data was quashed by the FCA, and the regulator said insurers needed to think deeper about the type and granularity of the data they are monitoring, with the inference that greater investment was needed from the industry on this matter.

At Insurance DataLab we want to work with our partners to help the industry improve customer outcomes through proper monitoring and analysis of data across a range of customer experience points.

At a time when the scrutiny from the FCA is intensifying this doesn’t only make business sense, but it is also becoming a regulatory imperative.

As such, we want to facilitate a behind-closed-doors virtual roundtable in February so that leaders across the industry can come together in confidence and discuss the issues that lay ahead.

We hope such a conversation could lead the way for a more united approach to the implementation of Consumer Duty that not only fulfils the regulatory requirements laid down by the FCA, but also leads to genuinely better customer outcomes as well as better trading conditions for the industry.

Should you be interested in being involved in such a discussion, then please do get in touch to register your interest. We will be sharing further details in due course.

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