REG Reviews
3rd June 2024
Last month, the Consumer Duty Alliance launched a clarifying guide to assist firms preparing their annual board reports, premium finance requests soared amid cost-of-living pressures, the FCA set out measures to combat domestic financial abuse and REG achieved its ISO 27001 certification.
Read these articles and many more as we bring you all the important news and views in the insurance and financial services world…
The clock is ticking, and firms are expected to submit their first annual Consumer Duty board report on 31st July 2024, which is exactly a year since the FCA implemented Consumer Duty.
The Consumer Duty was introduced to protect customers and ensure firms are acting in the best interests of their clients, always putting them at the heart of every business decision they make.
To assist firms in putting together their first reports before the deadline, The Consumer Duty Alliance has launched a helpful guide.
This guide is called ‘Developing an Effective Assessment Framework’ and comprises of pragmatic and helpful information that can be used by organisations of all sizes.
According to the founder and CEO of the CDA, Keith Richard; “The guide aims to help demystify what’s needed to produce a report and provide practical guidance”. He also adds; “There are ultimately business benefits to getting this right beyond compliance with an FCA deadline.”
Moreover, it is also important for firms to prove that they’ve taken the necessary actions to comply with Consumer Duty.
Some of the topics the guide covers are:
All regulated businesses should already have embedded the Consumer Duty into their strategies and operations, ensuring that all customers are treated fairly and not taken advantage of.
Also, firms should’ve already completed or at the end of finishing their Consumer Duty annual reports. However, only 1% of companies say that they’ve finished and signed off their Consumer Duty reports.
Furthermore, almost half of industry professionals are expressing uncertainty about preparing their first annual Consumer Duty board report.
Given the Consumer Duty is quite new, many firms are struggling to meet the necessary requirements. As Keith Richards concludes: “For many firms, this is likely to be the first time they’ve had to produce such a detailed assessment of their strategies, practices, and client outcomes.”
The automation of assessment creation, distribution, collection, and collation is at the heart of REG’s new module, REG Exchanges. The powerful supply chain oversight tool is designed to address the challenges of automating fair value assessment processes. The unique Chains feature allows data to be collected from every link of a distribution chain, maintaining privacy throughout the chain, but giving suppliers complete oversight. Build your overview today with our helpful checklist to see how prepared you are.
The insurance sector is booming, and an insurance body has recently reported that employment in the City’s insurance market has reached its highest point in over 10 years, proving its recovery from the COVID-19 negative impact.
According to the London Market Group (LMG), which represent brokers and underwriters in London’s insurance market, commercial insurance and reinsurance companies employed over 59,000 people in 2023.
This is the highest number recorded since the LMG began tracking staffing levels in 2013 and it’s an increase of 43% since 2021 when the pandemic was at its peak.
Moreover, LMG estimates that the London market has reached around £141 billion in gross written premium in 2023, a number that doubled over the last 10 years due to surges in different risks that increased demand for coverage.
Regardless of the pressures resulting from Brexit and COVID-19, London has expanded its share of the commercial insurance and reinsurance sector to 8.3% in 2022, a record high in the last 12 years.
According to LMG’s CEO, Caroline Wagstaff, London is the centre for complex policy negotiations where brokers are reporting that they’re noticing more business coming to the city.
She also emphasises on the demographic burden explaining that half of employees are over the age of 40, which is one factor pushing insurance companies to recruit younger talent. She adds; “That’s why we do the outreach – we are trying to make specialty insurance a destination career.”
Economic uncertainties, inflation, job instability, higher interest rates and geopolitical upheavals are taking a toll on individuals being able to afford insurance products, which is pushing them to take a different route – requesting premium finance.
Indeed, new research carried out by Insurance Age, in collaboration with Close Brothers Premium Finance found that 60% of UK brokers confirmed that the number of commercial lines clients turning to premium finance to cover their insurance is set to increase in the next 12 months, according to Rachel Gordon.
Different brokers have shared with Insurance Age why clients are turning to premium finance to pay for their insurance. One broker shared; “Clients are dealing with increased materials and running costs and increased costs for insurance”, and that “More clients are asking for instalments to make premiums more manageable”.
Earlier this year, the first series of the Broker Pulse Survey uncovered that most brokers (81%) regularly discuss premium finance with their clients as a way to pay for their insurance in instalments. This clearly proves that clients value having the ability to spread their insurance payments over time to alleviate their costs burden.
The most recent survey as part of the second series shows that a high number of customers are already using premium finance. In fact, 55% of the brokers surveyed confirmed that between 25% and 50% of their commercial lines clients are already using it.
Increasing interest rates and cost of living aside, a shocking figure revealed that about 40% of brokers said that many commercial lines clients were more likely to select insurance based on price instead of needs. This could significantly mislead clients in big financial difficulties and in turn prevent them from seeing the bigger picture.
Despite the low costs that clients might be paying, this remains a huge source of profit for insurance firms, which contradicts Fair Value and Consumer Duty regulation, urging brokers to help their clients invest in the right policy in moments of vulnerability, not the cheapest one.
This research concludes that premium finance is a central and integral part of the insurance environment for both brokers and commercial lines clients they’re advising.
Artificial Intelligence (AI) has revolutionised the world in many ways – speeding up processes, automating tasks, assisting with strategies and more. While AI offers a myriad of benefits, it also poses serious risks which can be significantly damaging and abusive.
AI is not perfect, and unforeseeable consequences can easily arise if governments don’t take the necessary actions to prevent harm. But what harmful risks are we really talking about? Biases that affect people from different backgrounds, racism and discrimination, information leaking, and privacy breaches are all potential risks of AI development.
This is why the UK government is starting to put together a new legislation to regulate AI, even if the Prime Minister, Rishi Sunak, advised “not to rush” in creating rules for this new robust technology.
According to two people involved in crafting this legislation, such regulations could hinder the production of large language models such as Open AI which are the backbone of AI products like ChatGPT, Chatsonic and Google Bard.
Moreover, they added that what this legislation entails isn’t established yet and that nothing will be launched immediately. However, one suggests that firms developing the most robust models will be expected to share their algorithms with the government and prove the safety of their main product, rather than monitoring the applications themselves.
The Department for Science, Innovation and Technology adds that it is currently exploring and thinking about how this AI legislation will be formulated.
Sarah Cardell, CEO of the UK’s Competition and Markets Authority, expressed substantial apprehensions regarding a few tech companies crafting AI foundation models. She suggested they might possess the capability and motivation to influence markets in their favour.
While the UK is taking their time in finalising an AI legislation to allow room for innovation, the EU parliament has already imposed stricter laws to limit AI’s potential risks.
On an ending note, Rishi Sunak said last year; “This is a point of principle; we believe in innovation. How can we write laws that make sense for something that we don’t yet fully understand?”
An alarming cybersecurity breach at Outabox, an Australian company known for its facial recognition technology used in bars and clubs, has highlighted the hidden dangers of biometric data collection. This event has escalated privacy worries as AI-driven facial recognition technology becomes increasingly prevalent in public spaces, from shopping malls to sporting events.
Outabox, which has expanded its operations to the United States and the Philippines, initially deployed facial recognition kiosks as a part of Covid-19 safety measures. These kiosks, apart from monitoring temperatures, also helped identify individuals who volunteered for self-exclusion from gambling, showcasing a dual-use potential. However, a recent data breach incident has thrown the company into controversy.
A new website, “Have I Been Outaboxed,” reportedly created by former employees in the Philippines, claims to host over a million records improperly managed by Outabox. This includes sensitive information such as facial biometrics, driver’s license scans, signatures, and extensive club visit logs.
This breach has prompted significant backlash from privacy advocates and cybersecurity experts, highlighting the severe implications of such data vulnerabilities.
Samantha Floreani, of Digital Rights Watch, commented on the breach, emphasising it as a stark example of the potential harms from intrusive surveillance technologies like facial recognition.
The New South Wales police have confirmed an ongoing investigation, which has already led to the arrest of a 46-year-old man in Sydney, suspected of blackmail in connection with the breach. Outabox has acknowledged the incident and is actively coordinating with clients to manage the fallout.
Phil O’Shaughnessy, a spokesperson for IGT, a key supplier implicated in the alleged data leak, denied that the compromised data originated from their systems.
Meanwhile, Outabox has condemned the claims on the “Have I Been Outaboxed” website as harmful misinformation, though they have refrained from detailing which assertions they contest due to the ongoing investigation.
This breach not only underscores the urgent need for robust privacy regulations but also illustrates the broader societal implications of relying heavily on biometric technologies.
With incidents like these, calls for stricter limitations on facial recognition technology are gaining traction, advocating for a future where privacy and security are not mutually exclusive.
Despite some economic recovery, consumer confidence in wealthier nations has not yet returned to the levels seen before the pandemic. Data from the OECD’s consumer confidence index shows a continued dip, with confidence in April standing 1.6% lower than in 2019, highlighting a prolonged sense of economic anxiety among households.
This sentiment is heightened by a significant cost-of-living crisis, which has seen prices soar and wages struggle to keep pace. In the US, consumer confidence is 2.3% lower than pre-pandemic levels, with Europe also feeling the squeeze, evidenced by a 2.2% decline in the Eurozone.
The fluctuating economic landscape over the last four years saw confidence plummet during the pandemic, rally briefly upon reopening, and then drop once more as inflation reached heights not seen in decades.
Although there was a slight improvement of 1.2% from last year, it’s clear that consumer spirits remain low under the weight of ongoing financial pressures.
Economic growth in the UK and Eurozone has resumed this year, with the UK experiencing its fastest growth rate since 2021 at 0.6%. However, this has not translated into improved living standards, as UK output per capita remains below pre-pandemic figures.
Additionally, inflation rates have dramatically impacted consumer sentiment, peaking at 11.1% in the UK during 2022.
Despite a general trend of declining inflation rates, the cost-of-living remains significantly higher compared to early 2021, particularly in the UK and Eurozone. This economic strain is evident in stagnant household consumption rates and has been further compounded by a tight monetary policy that has kept interest and mortgage rates higher than usual.
The economic backdrop poses a challenge for politicians in the upcoming elections across the EU, UK, and US, with economic health a central campaign issue. The lingering low consumer confidence, amplified by the pervasive influence of social media, casts a long shadow over economic prospects and personal financial stability.
This environment of heightened economic uncertainty and the resulting strain on household finances is resulting in a cautious outlook among consumers, potentially influencing future market trends.
Smart home insurance is a relatively new tech insurance solution and is improving progressively. However, professionals are already seeing huge benefits when it comes to bettering customers’ lives.
Like any other industry, the insurance industry must adapt, and new solutions emerge continuously as technology becomes more sophisticated and customers need personalised insurance solutions tailored to their specific needs.
The Colorado Insurtech community, InsurTech Denver, has recently hosted a panel discussion covering the insurance benefits of smart homes where participants examined the scale and importance of smart home technology and insurance.
Vacquier, CEO of Beagle Services, a firm that specialises in professional use and monitoring of smart home technologies, tackled the effect smart home insurance has on underwriting and the handling of claims.
He said; “Smart home insurance is evolving beyond mere premium discounts to become a vital tool in risk mitigation and claims management.” We’re seeing a shift toward underwriting based on technology adoption and proactive risk prevention rather than reactive measures. This personalised approach is crucial for insurers to stay competitive and effectively manage risks.”
As technology is becoming ingrained in our everyday lives and our homes, it’s important for insurers to find ways to enhance their customers’ experience through exploring new tech insurance solutions and methods for risk mitigation.
All the panelists confirmed that smart home insurance’s benefits are way higher than its drawbacks. But it’s important for insurers to think about how they will ensure the success of these solutions and how they’ll maximise customer experience in the long term.
On 23rd May, Victoria Slade, Head of Sales presented to members of the Elixir Intelligence Programme at their May members meeting in Cardiff, with the topic focus being ‘AI & Tech: New Solutions for Managing Counterparty Risk and Exposure’.
Hosted by the Chair, Mike Pritchard, Compliance Manager at Legal & General, the session attracted members from various life insurance firms, including; Aviva, AIG, British Friendly Society Ltd, CRIF, Guardian Financial Services , HSBC, Holloway Friendly, Legal & General, Vitality, LV=, MetLife, National Friendly, Royal London, Scottish Widows, Shepherds Friendly ,The Exeter, Zurich Insurance.
Victoria discussed how RegTech solutions offer life insurance firms a proactive approach to counterparty risk management by accelerating onboarding, expediting information exchange, and ensuring continuous due diligence monitoring of trading partners.
Want to learn more about how REG can be your one-stop shop for managing all B2B trading, legal, and compliance risks? Book a demo with Victoria to see how we can help you trade faster, smarter, and safer.
“It was really great to speak to an audience who were keen to learn about how they could move away from manual processes and use technology to help manage counterparty risk & exposure. Having worked in the Life Insurance sector myself, I am all too aware of the outdated systems and applications these firms rely on. Onboarding controls was a key theme throughout and so it was a great opportunity for us to be able to present our solution to 15+ insurers and understand their key pain points. A great day!“
Many conversations around how risky and detrimental private equity is to the wider economy have taken place last month. In fact, The Bank of England (BoE) and the Financial Conduct Authority (FCA) seem to have different standpoints on the risks private equity brings to the general economy.
The central bank has warned lenders to closely examine their exposure to the $8trn sector because of the systemic risk it poses Moreover, the BoE has raised additional concerns about the private equity’s leverage, transparency and valuations.
In contrast, the FCA’s Chief Executive, Nikhil Rathi, completely rejects BoE’s concerns and tells the Financial Times that he’s not convinced that we can say that this risk is systemic.
Moreover, he add;: “There are risks in private markets, there is work to be done, but I do not think we should go into overkill regulatory mode where we put leverage limits on all of this activity, if actually, we have not got the evidence for it. Because I can see the case on the other side, of access to finance for businesses of all sizes.”
While Rathi recognises the “leverage on leverage” in this industry, he says there needs to be more data available to determine how risky private equity is. Even the BoE admits that some banks haven’t been able to measure the impact of private equity.
Last October, the FCA announced it would begin a review of private markets. This review is part of a joint effort with international regulators to assess the potential risks the non-bank market could pose to the overall financial health.
The review examines how participants in private markets manage risks, aiming to comprehend where risk accumulation might have occurred, how valuations are controlled, and the potential impact on other parts of the financial system, including banking.
According to the Financial Times, private equity assets have increased fourfold since 2012, supported by a decade of low interest rates. However, companies are facing growing financial strain as higher interest rates raise borrowing costs, sparking concerns among some regulators that an industry shock could have a widespread impact.
Concurrently, private credit has surged, with numerous buyout groups creating funds that directly compete with banks in financing deals.
Joanna Legg, Head of Consumer Policy & Outcomes at FCA, reveals a striking reality in her latest article, stressing the profound impact of domestic financial abuse, which affects one in six women in the UK. This form of abuse, transcending income, sex, and age, often remains hidden, victimising as many individuals as the population of London.
Financial abuse encompasses manipulative actions like unauthorised loans, bank account takeovers, and coercive use of joint financial instruments. The FCA is committed to safeguarding consumers, recognising that financial abuse can leave lasting vulnerabilities.
“Experiencing abuse can leave those affected in vulnerable circumstances, impacting their experiences of financial services, and potentially putting their financial future at risk,” notes Legg.
The FCA’s involvement is crucial, given that victim-survivors often turn to financial institutions before law enforcement. In response, the FCA has seen significant initiatives across the financial sector aimed at improving support for those affected.
Examples include banks creating safe spaces for confidential support and providing ‘flee funds’ to help victim-survivors escape abusive situations.
Further, the FCA collaborates with the government, trade associations, and regulators to enhance protective measures, drawing on domestic and international practices. It is working closely with organisations like UK Finance, the ABI, and CII to elevate awareness, share best practices, and monitor industry progress.
One of the FCA’s key strategies is the Consumer Duty, which mandates higher standards of consumer protection and requires financial services to prioritise customer needs, particularly to mitigate coercion and financial control. Legg explains; “We encourage firms to be alert to the possibility of coercion and financial control to reduce foreseeable harm.”
As part of its ongoing commitment, the FCA has also issued guidance to lenders on treating financial abuse cases with the sensitivity they warrant, ensuring that victim-survivors do not suffer additional harm through financial proceedings.
Overall, the FCA’s approach not only raises awareness but also encourages a regulatory environment that supports victim-survivors in regaining control of their financial lives, reflecting a broader commitment to addressing the complexities of domestic financial abuse within the financial services sector.
On 7th May, MPs have been informed about a significant data breach affecting the Ministry of Defence, aiming at service personnel.
While the government didn’t disclose the name of the potential country responsible for the hacking, Sky News believed it to be China.
This breach, primarily targeting the MoD’s payroll system managed by an external contractor, exposed sensitive data including names, bank details, and potentially addresses of UK armed forces personnel.
China has strongly denied any involvement, branding the accusations as “fabricated and malicious slander.” The Chinese government insists on its opposition to cyberattacks and rejects any political use of cybersecurity issues to tarnish its image.
This incident comes on the back of previous accusations against China, including the 2021 hack of the UK Electoral Commission, underscoring a pattern of sophisticated cyber threats arising from Beijing.
The timing is particularly sensitive, given the UK government’s efforts to balance national security concerns with its significant economic ties to China.
According to the Guardian, approximately 270 000 payroll records associated with almost all members of the British armed forces have been unveiled by the Chinese hackers in a breach at a third-party vendor.
Although all eyes were on China, Defence Secretary Grant Shapps informed Parliament about the “suspected work of a malign actor” in this breach, underlining the gravity of the threat without directly naming China. This stance reflects ongoing diplomatic tensions and the complexities of attributing cyber-attacks definitively to state actors.
While hackers are thought to have been in the system for an extended period, potentially weeks, there is no direct proof that any data was stolen or tampered with.
Even the salaries haven’t been impacted, although the personnel received credit checks to verify if bank information was being used without consent. Furthermore, experts suggest that financially vulnerable personnel might be targeted for coercion, reflecting a broader strategy of exploiting personal data for strategic gains.
Tobias Ellwood, a Conservative MP and former soldier, highlighted the evolving nature of warfare where defending digital infrastructure is as crucial as physical defences. This breach serves as a reminder of the significant cybersecurity challenges facing the UK, necessitating more robust protections for sensitive government data systems.
So far, the ongoing investigation has shown that no sensitive data has been stolen. Unfortunately, this situation begs the question whether other countries that have difficult relations with China would want to share confidential information with the UK.
The British Insurance Brokers’ Association (BIBA) released a new guide aimed at helping members that arrange premium finance for clients to prove their fair value to customers.
It also elaborates on the brokers’ regulatory duties, what to reveal and other useful tips to take into consideration when offering premium finance.
This new guide has been introduced by BIBA CEO, Graeme Trudgill, at the BIBA annual conference in Manchester on the 15th of May.
He says; “Premium finance helps customers who, for whatever reason, prefer not to pay their premiums up front. However, there are costs to doing this. This guide helps to explain how premium financing works and why customers may need to pay more to spread their payments.”
This decision occurred amid growing regulatory and political scrutiny of the premium finance sector, highlighted by the recent questioning of the FCA’s Insurance Director, Matt Brewis, and Allianz CEO, Colm Holmes, by the Finance Treasury Committee regarding the product’s value.
Moreover, it’s been designed to complement the Fair Value Assessment Framework created by the economics consultancy Oxera for the trade association. It aims to help members clearly communicate the fair value of the services they offer as credit brokers.
David Sparks, BIBA Regulation Director said; “We wanted to give members the confidence to show that they are offering fair value to their customers when suggesting premium finance products.”
He also adds; “We hope that once customers understand the costs incurred by the lenders in offering the finance and the work done by the broker in offering and managing the service throughout the life of the loan, they will see the value such arrangements bring.”
The takeaway is that this guide ensures that brokers are doing well by their customers and are respecting the Consumer Duty and Fair Value laws issued by the FCA last year.
In the first half of 2024, the UK housing market has stagnated, marked by minimal growth as mortgage rates rise and economic uncertainty lingers. According to Halifax, the average house price in April slightly increased by 0.1% to £288,949, with a year-on-year increase of 1.1% from April 2023, indicating a market that is struggling to gain momentum.
Amanda Bryden, Head of Mortgages at Halifax, notes; “While there is a degree of volatility, the reality is that average house prices have largely plateaued in the early part of 2024. This reflects a housing market finding its feet in an era of higher interest rates.”
Despite these challenges, Bryden remains hopeful for a modest increase in house prices later this year if interest rates are cut.
Mortgage rates, however, have risen, influenced by market expectations of fewer interest rate cuts by the Bank of England. The average two-year fixed rate mortgage reached 5.93% in April, complicating affordability for first-time buyers and those looking to remortgage.
Regional disparities in house price changes are notable. Northern Ireland and the North West of England saw increases of 3.4% and 3.3% respectively, while the south of England experienced declines due to high mortgage costs impacting demand.
Sarah Coles, Head of Personal Finance at Hargreaves Lansdown, emphasises the uneven nature of the market, stating; “Look a little closer at the annual figures, and the market is wonky – with the north/south divide seeing prices climb in the north and drop steadily in the south.”
She attributes this to mortgage rates remaining “stubbornly high” and creeping upwards, dampening buyer enthusiasm in pricier regions like the south of England.
Despite current challenges, estate agents like Savills are optimistic, predicting a 21.6% increase in average house prices by the end of 2028. This outlook is based on an anticipated improvement in economic performance and steady interest rate cuts from 2025 onwards.
In summary, while the UK housing market faces significant challenges, there is cautious optimism that conditions may improve later in the year, potentially strengthening buyer interest and stabilising prices. However, the immediate future remains uncertain, with affordability constraints and high borrowing costs continuing to test the resilience of both buyers and the market itself.
It’s becoming harder and harder to control what lures the internet, and children aren’t shielded from the ‘toxic’ content they’re exposed to, especially with the rise of TikTok and its popularity among the youth.
Back in 2023, the information commissioner found that up to 1.4 million children under the age of 13 use TikTok and experts ruled out that they’re being bombarded with harmful content that fuels addiction and other disorders, which can lead to suicide, accidental deaths or even murder.
The UK’s communication regulator, Ofcom, has recently alerted social media platforms that they could be banned for people under the age of 18 if they don’t comply with online safety rules.
On May 8th, the regulator also published a set of measures and codes which demand tech companies to have stronger measures for age checking and to reconstruct their algorithms in a way that diverges “toxic” content from children and young teens.
This package of proposed measures requires both social media and other online services to always put the children’s safety first when designing their services and developing their algorithms.
Ofcom confirms that the new rules comprise of over 40 efficient measures, most of them revolving around the algorithms which are the main hook for what people are shown on social media timelines.
While giants like Meta and Snapchat claim they’re using extra protective measures for teenagers and children, including giving parents the necessary tools to control what their kids are seeing online, many parents aren’t convinced that this is enough.
This is particularly true for parents who have lost their children to harmful online exposure and believe that the watchdog’s new rules are “insufficient” to fully protect children.
The European Union is also investigating Instagram and Facebook as both platforms are suspected to be addictive and have detrimental effects on both children’s mental and physical health.
Lisa Kenevan lost her son Isaac at 13 after he participated in a “black out” challenge online. She told BBC breakfast that; “The sad thing is the snail’s pace that is happening with Ofcom and social media platforms taking responsibility, the reality is there’s going to be more cases.”
Moreover, the new rules Ofcom suggested are part of a consultation that’ll come to an end on July 17th, and bereaved parents are among the people involved who believe that the Online Safety Act doesn’t do enough to entirely protect children on social media.
Importantly, the grieving families have sent a letter to the UK’s Prime Minister, Rishi Sunak, and Labour leader, Sir Keir Starmer, requesting them to take further actions to protect children online.
So, will these new rules be enough to prevent further harm from inflicted by big tech firms? And how many children have to suffer before watchdogs and regulators take final decisive actions?
In a remarkable turnaround from last year’s recession, the UK economy has shown significant growth in the first quarter of 2024, outperforming predictions with a 0.6% increase in GDP. This marks the fastest quarterly growth since 2021 and stands out notably in the G7, surpassing growth rates in both the Eurozone and the US.
The growth has been broad-based, with notable advances in car manufacturing and services, which saw a 0.7% rise. The boost in services is attributed to increased consumer activity as inflation begins to taper off. Additionally, manufacturing output rose by 1.4%, propelled by six consecutive quarters of growth in car production.
The Office for National Statistics highlighted this as a period of broad-based strength across various service industries, including retail, public transport, and health, although construction showed weaker performance.
Despite these positive indicators, the political response has been mixed. While Chancellor Jeremy Hunt identified the GDP data as “proof that the economy is returning to full health,” opposition figures like Labour’s Rachel Reeves cautioned against premature celebrations, pointing out that per capita, the economy is still trailing behind its state when Rishi Sunak took office.
Investor confidence seemed cautiously optimistic, with sterling marginally strengthening against the dollar. The Bank of England held interest rates steady at a 16-year peak of 5.25%, with hints at possible cuts if inflation remains low, reflecting a nuanced approach to monetary policy aimed at sustaining growth without reigniting inflation.
The current economic momentum was further underscored by a stronger than expected performance in March, where GDP grew by 0.4%, far exceeding the 0.1% predicted by economists. This robust month capped off a quarter that not only marked a recovery from the slight recession but also positioned the UK economy on a potentially steadier path for growth.
As the upcoming general election approaches, Prime Minister, Rishi Sunak, remains positive, emphasising the economy’s “real momentum” and projecting confidence in the ongoing recovery. However, with the economic landscape still showing signs of fragility, the government faces the dual challenge of fostering growth and managing public expectations.
This resurgence in GDP is a crucial sign of the UK’s economic resilience, suggesting a gradual return to pre-pandemic stability and offering a glimmer of hope for sustained improvement in household financial health.
We are proud to announce that last month REG became ISO 27001 certified! We are honoured to join the ranks of organisations committed to upholding the highest standards in information security management. ISO 27001 is a globally recognised prestigious standard, and this certification showcases our unwavering commitment to best practices in managing information.
Being hashtagISO27001 certified means we have a robust system in place to know what data we hold, where it is, and who has access to it. If there’s any unauthorised access, we can swiftly identify this and act accordingly, ensuring the integrity and privacy of our clients’, stakeholders’, and employees’ data.
This achievement wouldn’t have been possible without the collective effort and dedication of our entire team. It highlights our continuous commitment to compliance with international security and safety standards, ensuring that we handle all data with the utmost responsibility and confidentiality.
This certification is just the beginning of our ongoing dedication to excellence in information security management. We’re always working to ensure we stay at the forefront of managing information security to keep your data safe, so you can focus on what matters most – growing your business.
Last month, the FCA urged motor finance firms to allocate sufficient resources, financial institutions expedited technology adoption to tackle regulatory hurdles, underinsurance presented a pivotal challenge for brokers, and insurers came under the spotlight concerning environmental and social responsibilities...
Last month, the FCA urged financial advisors to review retirement income advice processes, whilst raising concerns within the motor sector regarding fair value, Lloyd's predicted generative AI to increase cyber threat risks, the UK Parliament released its much anticipated 'Sexism in the City' report, and REG launched its new Partnerships Programme...
Last Month, the FCA labelled fair value and pricing as the biggest challenge of Consumer Duty, pension funds drove a surge in UK corporate bond investments, insurers rallied for an investment boost with innovative partnerships and REG published its 2024 research report, exploring the evolving landscape of regulatory compliance and the use of technology...
Last month, The FCA and the UK Government invited feedback on three proposals designed to improve individuals' decision-making regarding investments and pensions, The IMF suggested that almost half of jobs will be impacted by artificial intelligence and the FCA has highlighted the importance of reporting cases of non-financial misconduct, even if individuals have signed non-disclosure agreements. Read these articles and many more, as we bring you all the important news from the insurance and financial services world...
Last month, the FCA unveiled an overseas funds regime and measures to improve accuracy of credit files, $420m was pledged to climate ‘loss and damage’ fund at COP28, the digital pound has been cautioned to pose risks to financial stability and the UK insurance sector advocated for relaxed regulations to better attract captive insurance companies.
Last month, the FCA urged companies to ensure Consumer Duty reports are a priority, the UK made headway following the publication of the world's first global guidelines for the secure development of AI technology, the UK government pushed regulators to prioritise economic growth and REG hosted its much anticipated Mind Matters panel event, focused on how we can work together to ensure mens mental health at work is supported...
Last month, BIBA introduced a fair value assessment framework, leaseholders have been prioritised under the FCA's buildings insurance reforms, Lloyd's of London warned on climate related losses and humanoid robots are driving workplace efficiency...
Last month, the Government announced modernised reforms to insolvency regulation, the Vesttoo scandal underscored the importance of enhanced due diligence among MGAs, asset managers sparked concerns of ‘green hushing’ and AI implementation saw revolutionary transformations to air traffic control and coral reef restoration!
Last month, the FCA launched an investigation into rules around banks and political exposed persons, the UK government accelerated the fight against carbon emission reduction through AI investment, the nightlife sector appealed to insurers for support amid capacity crisis and REG released our enhanced Declarations feature.
Last month, MGAs were revealed to be paving the way for tech adoption, the FCA launched a review into asset managers' liquidity management, brokers were urged to address climate change risks and Geneva hosted the world’s first ever human-robot conference...
