REG Reviews
1st July 2025
Last month, experts at the Global RegTech Summit stressed that data governance must be embedded across the entire organisation, the UK insurance sector came under strain from climate change and regulation, the EU ramped up it’s cybersecurity efforts and REG joined Insure TV’s MGA Masterclass ahead of MGAA Annual Conference to discuss the emerging opportunities for the sector.
Read these articles and many more as we bring you all the important news and views in the insurance and financial services world…
According to experts at the Global RegTech Summit that took place on the 20th of May, financial institutions must establish a comprehensive organisational culture centered on data governance and accountability.
And this is the topic that one of the panels entitled ‘Data Compliance Decoded: Handling, Governance, and Technology Insight’ has exclusively focused on, as a lot of enterprises get caught up in the data governance team’s loop, neglecting the fact that data protection must be a shared responsibility across all departments.
The session featured:
And to start the session, the participants had to answer how crucial a safe and resilient framework for data compliance is for financial firms.
Regulatory bodies across the globe are enforcing stricter data protection and governance measures, driven in large part by the EU’s GDPR and its global influence.
One of the speakers at the summit highlighted that both proper and improper data practices can have far-reaching effects.
Since trust is central to the financial services sector, any risk to data – even for basic compliance purposes – can lead to significant losses in customer loyalty, revenue and trade relationships.
Moreover, another panellist expressed concerns around data governance being siloed from the rest of the business and only being associated with compliance teams, which narrows teams’ thinking down to their job descriptions only, while in reality, every department in an organisation must think holistically about what’s right for the business and be involved in data protection best practices.
In fact, the panelists went on to admit that the discrepancy between teams in one of the major hinderances facing companies when it comes to upholding data compliance.
One of the main sources resulting in these issues is linked to teams that operate in different jurisdictions or firms that operate siloed and outdated systems.
In order to surmount data governance issues, firms should consider working with reputable tech partners so that everyone in the company is on the same page using one unified and integrated platform, which helps divide data governance responsibility across the entire business.
Moreover, all participants agreed that firms need to change their data governance culture and fully understanding the consequences of getting it wrong.
Too often, decisions around data are made without considering the full range of risks and firms can be exposed to regulatory penalties, financial loss and severe reputational damage.
To improve, businesses need to take an all-encompassing approach and consider all the risks across the whole organisation not just one bit of it and have stronger controls and better protection of sensitive information at all levels of the business.
From May to June 2025, the UK insurance technology sector has continued its rapid transformation, driven by AI innovations, platform consolidation, and evolving regulatory expectations.
AI at the centre of change:
Leading UK insurers and brokers have significantly increased their use of generative AI (GenAI) to enhance underwriting, claims handling, customer interaction, and fraud detection. Industry surveys also reveal that 67% of insurers are piloting large language models (LLMs), with improvements in customer service speed by around 35%.
Platform plays and scale-ups
Major players are expanding through strategic acquisitions and digital platform integration. For example, Ageas is set to complete the acquisition of esure by mid2025, gaining its strong online and comparison-platform presence.
Meanwhile, the Lloyd’s Market sees platform-based innovations: InsurX enabling automated risk placement; Peppercorn AI offering personalised customer interactions; and Cenata streamlining reinsurance transactions—all powered by Microsoft Azure and cloud infrastructure.
Hiscox UK has introduced a pioneering technology insurance policy that offers explicit coverage for AI-related risks—one of the first in the UK to do so. This reflects a trend towards clarity and specificity as insurers address novel risks emerging from AI deployment.
Regulatory focus on AI risk and fairness
The Chartered Insurance Institute and regulators have pressed for accountability frameworks: algorithmic fairness assessments, human oversight, clear explanations of AI decisions, and workforce upskilling. The FCA’s “Supercharged Sandbox” initiative also enables safe experimentation with AI in financial services.
Cyber incidents are on the rise and businesses are feeling the impact. According to new research for QBE, 1 in 7 firms experienced at least a full day of disruption due to a cyber event in the past year. Alarmingly, over half of these breaches (59%) were linked to vulnerabilities in their supply chain.
The findings, based on data from 9 Western countries, show that 52% of mid-sized businesses (100–2,000 employees) were hit by a cyber attack in the last 12 months. Almost half suffered financial losses as a result.
Geopolitical tensions, particularly the war in Ukraine, are fuelling the spike. A report by Control Risks for QBE highlights a 42% increase in serious cyber incidents across Europe and North America since 2023. Globally, strategically disruptive attacks, those designed to cause significant economic or political impact, have nearly doubled since 2020 and are projected to rise further.
Businesses in the UK, Italy and Canada are especially alert, with over 30% “very concerned” about the threat. Still, only 1 in 3 companies plan to raise their cybersecurity budgets above inflation, despite clear risks.
AI is also changing the cyber landscape. Criminals are using generative AI tools, including deepfakes in nearly 1 in 10 successful attacks. Meanwhile, AI systems themselves are becoming targets, with threat actors exploiting prompt injection and dataset tampering.
Yet despite the risks, AI adoption is growing fast. Two-thirds of businesses are already using it, with 86% believing AI will benefit their national economies. Efficiency, innovation, and customer service top the list of expected gains.
The message is clear: as digital threats evolve, so must defences, especially across the interconnected web of global supply chains.
On 3rd July 2025, the insurance industry’s most dynamic players will come together at Old Billingsgate for the MGAA Annual Conference — and this year’s theme, “Navigating a Bright Future,” couldn’t be more timely.
As the MGA space evolves rapidly in the face of regulatory change, technological innovation, and shifting customer expectations, this flagship event provides a crucial platform for connection, learning, and future-focused discussion. From senior leaders and underwriters to insurtech innovators and rising talent, the MGAA Conference is where today’s ideas meet tomorrow’s strategies.
The conference will bring together managing general agents, insurers, brokers, technology partners, and regulatory experts — all united by the desire to drive the market forward. It’s a unique opportunity to network with peers, hear from decision-makers, and explore how the MGA sector can adapt, collaborate, and thrive in an increasingly complex landscape.
At its heart, the MGAA Annual Conference is about more than just updates and panels — it’s about shaping the future of delegated authority in insurance. As Victoria Slade, Head of Sales at REG Technologies, puts it:
“Alongside key networking opportunities, the MGAA conference offers expert-led panels, keynote speeches and breakout sessions covering current trends, regulatory developments, and future challenges in the MGA and wider insurance industry. With the conference theme being ‘Navigating a Bright Future’, it will be great to see how the wider market is leveraging technology to retain a competitive advantage and meet evolving customer expectations.”
REG Technologies is proud to be taking an active role in this year’s agenda. As a trusted RegTech partner to MGAA members and Annual Silver Sponsors, we’ll be on hand to discuss how smarter counterparty risk management is helping firms stay compliant, reduce operational friction, and scale securely.
Catch Sandra Simoes, Head of Product at REG Technologies in the Tech Zone for her session: “Play Your Cards Right with REG – Future-Proofing Counterparty Risk Management”
From TOBA tangles to due diligence delays, Sandra will walk attendees through real challenges MGAs face and how RegTech tools are changing the game.
“In an industry where the stakes are high and the rules keep changing, you can’t afford to leave compliance to chance,” says Sandra. “This session is all about helping MGAs take control of their risk strategies and future-proof their operations with confidence.”
We’re also thrilled that Zoë Parsons, REG’s Head of Marketing and a member of the MGAA Next Gen Committee, will be hosting this year’s Next Gen panel from 1.30 – 2.15pm, with panelists including: Samantha Lydon, Managing Director at Empower Development, Sandra Lewin, Founder of 100 Women in Insurance and Eden Comins, Community Marketing Executive at Insure TV
The panel will dive into how building meaningful relationships can unlock career growth, confidence, and long-term success in insurance. Whether you’re just starting out or looking to level up, expect authentic stories, actionable insights, and practical advice you can take straight back to the workplace.
“The MGAA Conference is a fantastic space to explore the trends, challenges, and innovations shaping our industry,” Zoë notes. “I’ve always believed that when you play your cards right — with the right data, tools, and people around you — you don’t just adapt, you move ahead. And I’m excited to keep supporting that momentum.”
If you’re attending this year’s conference, be sure to stop by and connect with us at Stand 44. Whether you’re looking to navigate evolving compliance demands, understand how RegTech fits into your growth strategy, or simply want to explore smarter ways of working — we’d love to talk.
The MGAA Annual Conference isn’t just another date in the diary. It’s where the industry looks forward. Let’s navigate a brighter future — together!
The pension industry has recently seen the introduction of a new Pension Schemes Bill, which was announced in the parliament on the 5th of June.
This new bill comes with a wide range of measures to ensure that pensioners are treated fairly and get value for the money they put in.
Pensions Regulator, CEO Nausicaa Delfas says: “Making sure all schemes are focused on delivering value for money (VfM), helping to stop small, and often forgotten pension pots forming, and guiding savers towards the right retirement products for them, will mean savers benefit from a system fit for the future.”
Moreover, CEO of Phoenix Group, Andy Briggs highlighted that this new bill will ensure that savers get value for their money, noting that: “People across the country will feel the impact of these changes with plans to consolidate small pots, ensure the dashboard delivers and provide default retirement income options at the point of retirement. Individually these initiatives would be significant but in combination they have the potential to make a significant difference to people’s retirement across the UK and we look forward to working through the details with the government and other stakeholders.”
Patrick Heath-Lay, CEO of People’s Partnership, called the workplace pensions bill a “pivotal” reform that will improve outcomes for savers. He praised measures like default consolidator schemes to address small pots and value-for-money (VfM) metrics to help savers compare providers, urging a focus on prioritising savers during implementation.
While Steven Cameron, Aegon’s pensions director, urged personal engagement and clear government timelines for implementation.
David Brooks, Broadstone’s head of policy, called for consistency and trust in pensions policy, warning against constant changes that confuse savers.
He described the bill as a “revolution” in defined contribution (DC) pensions, praising overdue reforms like default retirement pathways and pensions dashboards but stressed the need for a robust VfM framework for fair provider comparisons.
Since May 2025, UK regulators have taken decisive steps to reshape the regulatory framework governing the insurance industry, focusing on reducing burdens, enabling strategic investments, and reinforcing resilience.
In May, the Financial Conduct Authority (FCA) launched a consultation to simplify its insurance rulebook.
Key proposals include redefining “large commercial insurance customers” to ease conduct rules, removing blanket annual product reviews, cutting duplicative reporting (such as employer’s liability notifications), and scrapping prescribed training hours for insurance personnel.
These reforms aim to lower regulatory costs while maintaining protections for SMEs and retail consumers.
Simultaneously, the Prudential Regulation Authority (PRA) – part of the Bank of England – proposed the Matching Adjustment Investment Accelerator (MAIA).
This framework would allow insurers to include certain assets in their matching adjustment portfolios before formal PRA approval, aiming to unlock capital for domestic infrastructure investment. The consultation closes in June, with implementation targeted for late 2025 or early 2026.
Broader supervisory priorities have also been clarified. The PRA reaffirmed its focus on embedding Solvency UK reforms, supervising cyber resilience, underwriting discipline, and the growing use of funded reinsurance.
In June, the PRA held a webinar on its Life Insurance Stress Test (LIST 2025), underlining transparency and the resilience of leading life insurers.
Collectively, these regulatory updates represent a clear pivot: UK authorities are easing unnecessary constraints while ensuring systemic safeguards. Insurers are given more flexibility to innovate and invest domestically, but remain under scrutiny regarding capital adequacy, cyber resilience, and policyholder outcomes.
The effectiveness of these reforms will be pivotal in determining if the UK can maintain its competitive edge as a global insurance hub.
The UK insurance industry is navigating a turbulent period, marked by rising regulatory scrutiny and the increasing financial impact of climate-related claims.
Since May 2025, insurers have been bracing for the implementation of enhanced reporting standards introduced by the Financial Conduct Authority (FCA), aimed at improving transparency in climate-related financial disclosures. Under the updated rules, all major insurers must now provide detailed breakdowns of climate risks embedded in underwriting and investment portfolios. This move reflects a growing regulatory push to ensure resilience within the financial system, especially in the face of more frequent and severe weather events.
Insurers are also grappling with the financial consequences of record-breaking floods and storms across the UK this spring. Claims volumes surged by over 20% in May alone, according to early estimates from the Association of British Insurers (ABI). Commercial property and motor insurance segments have been particularly affected, straining profit margins and putting pressure on underwriting performance.
At the same time, the Bank of England’s continued pause on interest rate hikes has limited investment income growth—a traditionally stable buffer against underwriting losses. Many insurers are responding by reassessing pricing models and reevaluating risk exposure in high-risk areas.
Despite these headwinds, there are signs of resilience. Larger firms with diversified portfolios are better positioned to absorb shocks, and innovations in parametric insurance and AI-driven risk modelling are offering promising ways to adapt.
The months ahead will likely determine how well the industry can balance its dual mandates of profitability and long-term sustainability in a rapidly evolving risk landscape.
MGAs continue to be one of the most dynamic forces in the insurance market — balancing innovation, flexibility, and niche underwriting expertise to deliver real value across the distribution chain. But as economic pressures mount and regulatory expectations rise, firms must evolve fast to stay ahead.
That message came through loud and clear during the recent Insure TV MGA Market Outlook Masterclass, where a panel of experts explored current market dynamics, the role of technology, and the importance of strong broker-insurer partnerships.
The session brought together key voices including Michael Keating, CEO (MGAA), Victoria Slade, Head of Sales (REG Technologies), Tamsin Harrison, Regional Schemes Underwriter Manager (AXA UK), and Gary Head, Chief Underwriting Officer (Optio). Collectively, they painted a picture of an MGA sector at a critical juncture — full of potential, but facing new challenges that demand smarter strategies and sharper tools.
Tech, Trust, and Transparency
With regulation tightening — particularly around Consumer Duty and Fair Value — MGAs need to be able to demonstrate control, governance, and data-led decision-making. There was a strong emphasis on the importance of embedding technology to simplify compliance and unlock efficiency, especially when it comes to managing counterparty risk and evidencing good customer outcomes.
It’s not just about ticking regulatory boxes; it’s about using the right tools to operate faster and smarter. Tech adoption was highlighted as a key differentiator for firms looking to maintain credibility and grow sustainably.
Broker Collaboration and Capital Confidence
The discussion also turned to the evolving broker-MGA relationship. As capital providers become more selective, MGAs must offer more than underwriting capability — they need to provide transparency, operational resilience, and strategic alignment. Building trust with both brokers and carriers is essential for long-term success.
Timely Conversations Ahead of the MGAA Conference
This Masterclass couldn’t have come at a better time. With the MGAA Annual Conference just around the corner, it’s clear that these market issues — from regulation to innovation — will be high on the agenda.
For anyone who missed the live session, the full recording is well worth a watch. It offers an up-to-date snapshot of the MGA landscape and sets the tone for deeper discussions to come.
The European Union is stepping up its role in tackling cybersecurity issues, following a funding scare in April that exposed Europe’s heavy reliance on US infrastructure. Juhan Lepassaar, executive director of Enisa (the EU’s cybersecurity agency), stated that Europe must “step up our game” and take a more active stance in reporting and addressing cyber threats.
In April, concerns were raised when US government funding for a key security organisation, which oversees a global catalogue of cyber vulnerabilities, faced temporary interruption. Though the issue was later resolved, it highlighted Europe’s dependence on the US for critical cybersecurity infrastructure.
To address these concerns, the EU launched a “European vulnerability database” last month, aimed at providing guidance and proactive measures to help European businesses and governments tackle cyber threats. This initiative is seen as a vital step in strengthening the global cybersecurity framework and reducing Europe’s dependence on external support.
Lepassaar emphasised that there has been a clear rise in state-sponsored cyberattacks, particularly targeting critical infrastructure and public administration. He pointed out that sectors like electricity, telecoms, and banking have relatively strong security measures, but areas such as public administration, healthcare, and waste management remain vulnerable.
As part of the EU’s broader strategy, new cyber resilience rules were introduced last year, requiring companies to embed stronger security standards in products with digital components. The European Commission is also reviewing its Cybersecurity Act, which could further expand Enisa’s mandate to ensure better implementation of these standards.
With cybersecurity threats on the rise, Europe’s new efforts aim to safeguard not just its own digital infrastructure, but contribute to a more secure global network.
The UK’s labour market is showing signs of strain, with unemployment reaching 4.6% in the three months to April 2025-the highest level since July 2021. This marks a 0.1% increase from the previous quarter, indicating a slowdown in employment growth and raising concerns about the sustainability of the post-pandemic recovery.
Wage growth is also decelerating. Regular pay, excluding bonuses, grew by 5.2% in the same period, down from 5.5% previously. This trend indicates that the post-pandemic surge in employment and earnings may be losing momentum, suggesting a shift toward a more sluggish labour market.
Economists have pointed to multiple factors contributing to this trend, including rising business costs. The government’s hike in employer National Insurance contributions, which began in April, has added pressure on companies, forcing them to reconsider their staffing and wage strategies.
This tax increase, which affects over a million businesses, is thought to be one of the key contributors to the recent rise in unemployment. In addition, sectors with already thin profit margins, such as hospitality and retail, have been particularly hard-hit by these increased costs, leading to greater uncertainty about future job creation.
The Bank of England is closely monitoring these developments. Governor Andrew Bailey noted that businesses are adjusting to higher payroll taxes by reducing hiring and slowing wage growth, which could help mitigate inflationary pressures. However, he also warned that while wage-driven inflation risks remain manageable for now, the economic environment is still fragile, and further policy adjustments may be needed.
For businesses and households, these trends signal a challenging economic landscape. While cooling wage growth and rising unemployment may alleviate some inflationary pressures, they also pose risks to economic stability, with the potential for reduced consumer spending and heightened financial strain on businesses.
The Bank of England’s upcoming monetary policy decisions will be crucial in navigating these complex dynamics, balancing inflation control with supporting sustainable economic growth.
The regulatory burden has only been intensifying in the last couple of years, especially with the FCA’s introduction of Consumer Duty in July 2023, which has subsequently pushed the watchdog to consider regulatory cuts for a more competitive market.
In fact, many insurers, brokers and MGAs have expressed concerns around the intensified regulations the FCA has been enforcing and questions whether these rules would slow down business and competitiveness.
Brokers, especially smaller ones, are reducing panel sizes to focus on key insurers due to the burden of proving fair value, focusing only on key bigger accounts as reported by Insurance Times.
According to managing director at Insurance Compliance Services, Jill Hambley: “FCA rules have placed a lot of regulatory cost on brokers and the end result is that some of them are starting to tell insurers ’I just can’t place business with you anymore because we can’t carry that overhead in time and cost.”
She adds on that: ”Distributors have got a significant role to play and the complication for them is that it’s not just one insurer that they’ve having to deal with, but potentially in excess of 100.”
In its efforts to ease the regulatory burden, the FCA is thinking about withdrawing its REP022 (General Insurance Pricing Attestation), which was temporarily rolled out in 2022 to enhance pricing governance.
With these regulatory cuts, and continuous monitoring of risks without duplicated data reporting, the FCA believes that it would be enough to ensure customers are treated fairly and positive outcomes are met.
In addition, as part of the FCA’s plan to simplify compliance rules for the insurance market, large commercial insurance customers will be excluded from the regulator’s conduct rules and companies won’t have to produce yearly fair value reports.
According to the FCA, this move will ‘promote growth’ and increase competitiveness, eradicating time consuming regulatory requirements and crippling red tape.
On June 11th, REG Technologies hosted a compelling Market Briefing for MGAA members, led by Nathan Banfield, Head of Customer Success. The session tackled one of the industry’s most pressing challenges — how to achieve compliance with Consumer Duty and Fair Value expectations in an increasingly complex distribution chain.
As Consumer Duty continues embedding itself into the DNA of regulated firms, the pressure is on to not just comply, but to evidence good outcomes through transparent, timely, and accurate data. This was a key theme of the session, as Nathan outlined the FCA’s shift from passive guidance to active enforcement — highlighting the regulator’s scrutiny of vulnerable customer treatment, intermediary commissions, and governance gaps across distribution chains.
“Boards can no longer rely on static policies — they must demonstrate active oversight, with meaningful MI and dashboards that show where value is delivered or lost,” Nathan explained. “This isn’t about checking boxes. It’s about proving outcomes.”
Fair Value Assessments — a core pillar of Consumer Duty — were unpacked in detail. From identifying who gets paid what and why, to documenting the rationale for pricing relative to product benefits, Nathan stressed that assessments must be ongoing and backed by data.
Yet many firms are still relying on manual processes — from spreadsheets and surveys to disconnected systems — risking version control issues, compliance gaps, and reputational harm. “Manual workflows not only waste time,” Nathan said, “they introduce operational risk and blind spots across the chain.”
The session then shifted focus to how RegTech is stepping in to address these challenges. Attendees learned how REG’s technology is helping insurers and MGAs automate counterparty data collection, centralise oversight, and transform compliance into a business enabler.
Through secure digital exchanges, real-time alerts, and full-chain visibility, REG enables firms to share and assess information at scale — all while meeting FCA expectations around transparency, evidence, and outcome delivery.
“RegTech isn’t just about compliance,” Nathan concluded. “It’s about giving firms the tools to work smarter, reduce risk, and refocus resources on what really matters — delivering value to the end customer.”
The briefing closed with practical use cases, showing how leading firms are already deploying REG’s solutions to modernise onboarding, mitigate counterparty risk, and meet their Consumer Duty obligations faster, smarter, and safer.
For those navigating Fair Value challenges, the session served as a timely reminder: in a world of evolving regulation, technology isn’t optional — it’s essential.
Last month, the FCA decided to cut back on some of its regulatory requirements as part of its efforts to become a smart regulator, the use of AI among brokers and the value it delivers continues to be questioned, Coinbase's data breach exposed 70,000 users, sparking costs and a lawsuit, and REG attended the Global RegTech Summit, uncovering unique RegTech insights and trends that keep shaping the market.
Last month, the FCA launched its 5 year strategy with a focus on embracing tech and combating financial crime, AI adoption rose among brokers, the BoE announced initiative to accelerate insurer investment, CII called on firms to prioritise vulnerable customers and REG became an Annual Silver Sponsor to the MGAA...
Last month, a new law was introduced to combat illegal online content, brokers struggled to tackle fair value rules, insurance associations join forces to wipe of misconduct in London insurance market and REG Technologies launched its Challenges and Risks Tracker to help insurers navigate their current counterparty risk management approach...
Last month, brokers were seen to be consolidating agencies to prioritise key insurer relationships, the FCA intensified its crackdown on misleading financial ads, fraudulent claims sky-rocketed and industry professionals pushed for enhanced AI training to bridge the gap within insurance. Read these articles and many more as we bring you all the important news and views in the insurance and financial services world…
Last month, the FCA updated its guidance on 'polluter pays' and redress liabilities, the regulator also announced strategies around 'unnecessary regulation,' insurance fragility in the US was revealed in the wake of LA fires, a shift to AI hiring was noted among UK firms, and REG Technologies partnered with Insurance Post to discuss the regulatory challenges facing MGAs and insurers and the role of technology in easing the burden.
Last month, the BoE planned for tougher liquidity rules, insurers and brokers joined forces to prioritise better consumer outcomes, reforms to pension support were explored to close advice gap, smaller firms were urged to focus on their ESG impact and legacy systems still prove a challenge for many insurers...
Last month, the FCA reviewed life insurers' bereavement claims processes, brokers were advised to revisit policies ahead of Employment Rights Bill enforcement, ISO introduced new global ESG guidelines to accelerate adoption of sustainable business practices and O2's AI "granny" rollout is shaking up scamming attempts...
Last month, experts dispute FCA concerns over brokers’ compliance with fair value, whilst the regulator tightens focus on premium financing firms, banks are warning customers about “quishing” scams, scientists achieved a breakthrough in DNA data storage, the FCA reveals ongoing issues of workplace misconduct in the London insurance market, emphasising the need for cultural change...
Last month, the FCA released its Product Oversight and Governance review and increased scrutiny of Principal Firms' oversight on ARs, REG partnered with Insurance Post to debate whether RegTech is a luxury or a necessity for tackling regulatory challenges, Insurance Business TV featured industry leaders discussing DEI and talent issues in the insurance sector, and rising concerns over deepfake and document fraud continue to affect the industry...
Last month, the FCA published a discussion paper aimed at bettering the commercial regulatory landscape, the average UK home insurance has skyrocketed, the increase in severe weather damages is compelling insurers to think of stronger strategies, and REG's new module REG Verified is set to revolutionise the insurance market...
Choose a time that suits you and meet one of our experts
Book a demo with us
