REG Reviews

REG Reviews – May 2026

5th May 2026

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Last month, regulators moved to simplify SM&CR compliance, the PRA targeted funded reinsurance risk, concerns grew over how UK firms manage sensitive data once it enters overseas AI systems and REG joined industry experts on an episode of MGAA Conversations.


Read these articles and many more as we bring you all the important news and views in the insurance and financial services world…

Industry News​

REGULATORY

Watchdogs Propose Changes to Simplify SM&CR Compliance

The FCA and the PRA have recently made changes to the senior managers and certification regime (SM&CR) to promote greater regulatory flexibility and reduce costs.

As part of these changes, brokers now have 12 weeks to submit a senior manager application without the FCA’s involvement.

Below are some clear benefits of this change, according to both watchdogs:

  • Greater flexibility for senior manager applications, with extended timeframes when there are unexpected or temporary changes.
  • Reduced administrative burden, by removing the need to certify overlapping functions and cutting certification roles by around 15%.
  • Simplified “fit and proper” assessments, helping firms streamline annual certification checks.
  • Proportionate regulation, with enhanced standards applying mainly to larger, more complex firms following higher threshold levels.
  • More time for compliance updates, including reporting changes to senior manager responsibilities and updating the staff directory.

Most of these changes started being implemented from April 24th , with reporting improvements taking effect from July.

The Government has proposed further reforms, including removing certification requirements for less senior roles and giving regulators more flexibility to reduce pre-approval for senior positions.

Additional changes are expected later this year as part of efforts to significantly reduce the SM&CR’s regulatory burden.

According to Sarah Pritchard, Deputy Chief Executive at the FCA: “These joint reforms will keep consumers and markets protected while making the regime more proportionate.”

She added that the regulator made use of its position to streamline the regime in order for companies to benefit ahead of future legislative changes.

David Bailey, executive director for prudential policy at the PRA concluded that: “Today’s reforms are an important first step in allowing firms to focus on what matters most, and we will continue to deliver further improvements to the regime as part of the wider reforms being made by the Government.”

TECHNOLOGY

Customers Warned Crypto ‘Insurance’ May Not Cover Losses

A Coinbase customer who believed his account was protected after paying for a premium subscription was denied reimbursement after nearly $100,000 in Bitcoin was stolen, as reported by Insurance Journal.

Despite advertising up to $1 million in account protection, Coinbase argued the customer was responsible for the loss and ineligible for coverage because he had not enabled all required security settings. When they took legal action, there was no public indication they’d get compensated.

Coinbase added that it doesn’t guarantee coverage for all losses and reviews each claim individually.

In fact, customers must meet strict eligibility requirements, such as enhanced security measures and formal reporting processes, and the terms include significant exclusions. As a result, many common incidents, particularly those involving phishing, user error, or personal device vulnerabilities, may not be covered, meaning the actual level of protection can be far more limited than it appears.

The case highlights ongoing concerns around the limits of consumer protections and the fine print behind crypto platform safeguards.

With Crypto assets and digital money comes great flexibility such as faster transfers, but this also signifies greater cybersecurity threat as hackers have the capability to hijack these tokens in a matter of seconds.

This is why more businesses are offering crypto investors added protection through insurance or warranties against theft, but the fine print often provides far less coverage than it appears.

At the same time, the crypto ecosystem’s low level of institutional oversight gives users greater control, but also exposes them to higher risk and responsibility, as highlighted by Insurance Journal.

Below are some compelling figures around crypto threat:

  • Crypto theft is rising fast, with $2.7bn stolen in 2025, up 22% year on year (Chainalysis).
  • The first crypto protection offer is Nexus Mutual, launched in 2019, which offers insurance‑style cover in case of online threats.
  • Nexus Mutual has paid outmore than $18m in claims covering events including smart‑contract hacks and the FTX collapse, according to founder Hugh Karp (The Street).

Coming back to Coinbase’s case covered by Insurance Journal, a 2023 case showed the limits of its protection: a customer was forced during a home invasion to transfer $156,000 in crypto. Although Coinbase ultimately reimbursed the loss, the reasons for doing so are unclear, as such situations may fall outside its stated coverage. This highlights that even extreme cases aren’t clearly guaranteed protection, leaving uncertainty for other users.

On an ending note, While insurance and protection products promise reassurance, their limitations and exclusions mean they may not provide the safety net customers expect, leaving crypto investors heavily exposed when it matters most.

REG joins fase

REG UPDATES

REG Technologies Joins FASE to Expand European Footprint and Strengthen MGA Ecosystem Collaboration

REG Technologies, a leading RegTech provider specialising in counterparty risk lifecycle management for the insurance industry, has announced its membership with FASE (Federation of European MGAs). The move marks a significant step in REG’s continued expansion across Europe and reflects its commitment to supporting a more connected, transparent, and compliant insurance ecosystem. 

Having established a strong presence in the UK market, REG views its membership with FASE as a natural progression. With increasing alignment between the UK and European MGA landscapes, the partnership provides an opportunity to extend proven capabilities into new markets while contributing to the ongoing evolution of delegated authority across the continent. 

FASE represents a growing collective of MGAs, carriers, and brokers across Europe, working to promote innovation, best practice, and collaboration within the sector. As the MGA model continues to gain traction internationally, REG’s entry into this ecosystem reflects both market demand and strategic intent. 

At the heart of REG’s offering is its counterparty risk management platform, designed to help insurance firms streamline onboarding, strengthen oversight, and manage ongoing risk across the full lifecycle of their relationships. In a market where regulatory expectations are increasing and distribution chains are becoming more complex, REG enables firms to move away from fragmented, manual processes towards structured, data-driven control. 

Graham Hogan, Chief Revenue Officer, commented on the announcement:  “Joining FASE is a natural next step for us as we look to build on the momentum we’ve established in the UK. The European market presents a significant opportunity, not just in terms of growth, but in terms of collaboration. There’s a real appetite across carriers, MGAs, and brokers to modernise how counterparty risk is managed, and we’re excited to be part of those conversations.” 

REG’s experience in the UK market has been shaped through close collaboration with the MGAA and its members, actively supporting compliance, enhancing operational efficiency, and strengthening market connectivity. As a Silver Sponsor, REG has played a vital role in fostering industry dialogue, sharing valuable insights, and working alongside firms as they adapt to evolving regulatory requirements.  

This existing relationship also underpins REG’s decision to join FASE, given the strong affinity between the two organisations and their shared ambition to support the MGA sector. 

Zoë Parsons, Head of Marketing added: “Our involvement with the MGAA has been instrumental in shaping both our platform and our perspective. We’ve built strong relationships across the UK market and have seen first-hand the challenges firms face when it comes to legacy processes. With the growing alignment between the MGAA and FASE, this felt like a natural extension, bringing what we’ve learned into a broader European context.” 

Through its FASE membership, REG aims to deepen its understanding of the specific challenges facing European firms, from regulatory fragmentation to cross-border distribution complexities. While the core principles of compliance and risk management remain consistent, the nuances across jurisdictions create both challenges and opportunities for innovation. 

By engaging directly with carriers, MGAs, and brokers across Europe, REG is focused on tailoring its approach to meet regional needs, ensuring that firms can achieve consistency, visibility, and control without compromising on speed or growth ambitions. 

A key milestone in this journey will be REG’s attendance at the inaugural MGA Rendezvous in Barcelona, hosted by FASE. The event brings together leading voices from across the European insurance ecosystem and represents an important platform for collaboration, knowledge sharing, and relationship building. 

REG will be represented by Zoë Parsons (Head of Marketing), alongside Graham Hogan (Chief Revenue Officer) and Sandra Simões (Head of Product), reflecting a cross-functional approach to market engagement. 

Zoë commented: “Events like the MGA Rendezvous are incredibly important, particularly in a market that’s still evolving at pace. It’s not just about visibility, it’s about listening, understanding, and contributing to the conversation. We’re looking forward to meeting firms across the ecosystem, learning more about the challenges they’re facing, and exploring how we can support them as they scale.” 

As REG continues to expand its footprint, its focus remains firmly on enabling insurance firms to operate with greater confidence and control. By digitising and standardising compliance processes, REG empowers organisations to reduce manual burden, improve data quality, and maintain robust oversight throughout the lifecycle of their relationships. 

Student Loan Interest Rates to Be Capped at 6%

FINANCE

Student Loan Interest Rates to Be Capped at 6%

The government has confirmed that interest rates on Plan 2 and Plan 3 student loans in England and Wales will be capped at 6% for the 2026–27 academic year. 

The change is intended to protect borrowers from a short-term rise in inflation that could feed into student loan interest rates. Under the current system, interest on Plan 2 loans is charged at between the Retail Prices Index (RPI) and RPI plus 3%, depending on earnings. Plan 3 postgraduate loans are typically charged at RPI plus 3%. At the moment, the highest earners on Plan 2 are paying 6.2%. 

By introducing a 6% cap, the government aims to prevent borrowers from being exposed to any temporary inflationary pressure linked to wider global events, including volatility in energy markets. Student loan interest rates are set for each academic year from 1 September to 31 August, using the RPI figure from the previous March. 

The cap will apply to all borrowers on Plan 2 and Plan 3 loans during the 2026–27 academic year, ensuring that no borrower on either plan is charged above 6% interest during that period. The government has described the move as a protective measure intended to provide stability within the student finance system at a time of economic uncertainty. 

This announcement comes alongside other recent changes to student finance procedures. The repayment threshold for Plan 2 loans increased to £28,470 in April 2025, its first rise since 2021, and rose again to £29,385 in April 2026.

The wider student finance system remains under review, with further reforms still being considered. 

ESG

Energy Costs Fuel Solar Demand

Rising energy costs and geopolitical instability are pushing more UK households to consider solar power as they look for ways to reduce bills and limit exposure to market shocks. 

Recent disruption in global energy markets, linked to tensions in the Middle East, has intensified pressure on household energy costs. For some homes, particularly those reliant on heating oil, the impact has already been significant. Others are bracing for further increases when Ofgem updates its energy price cap in July. 

The result is a sharp rise in interest in solar panels. Major suppliers and installers have reported increased demand in recent weeks, with more households actively researching systems and moving ahead with installations.  

The growing appeal of solar reflects both economics and technology. Installation costs have fallen in recent years, supported by zero VAT on solar systems, while improvements in battery storage are making it easier for households to store electricity for later use. For many, solar is no longer viewed only as an environmental choice, but as a way to gain more control over household energy use. 

Alongside this rise in demand, the government is taking further steps to expand solar adoption. New standards are expected to mean solar panels are fitted as standard on most newly built homes in England, while proposals are also being developed to allow plug-in solar systems to be sold more widely through supermarkets. 

These smaller systems, already popular in parts of Europe, could make solar more accessible to renters and households without the means for a full rooftop installation. 

At grid level, solar’s rapid growth is also changing the wider energy picture. UK solar capacity has expanded sharply over the past 15 years, and recent sunny conditions pushed solar output to record levels. At times, generation has exceeded demand, contributing to negative electricity prices in the wholesale market. 

As demand continues to grow, industry bodies are also urging caution, advising households to use properly accredited installers as more providers enter the market. 

REGULATORY

The Growing Role of Regulatory Intelligence as Core Function

The regulatory burden is intensifying and the complexity of regulators’ rules no longer has room fragmented compliance systems and legacy manual processes.

Nowadays, firms need to integrate rules into their core operational and commercial functions, making sure they are turning to centralised regulatory intelligence that is driven by clear, actionable insights.

According to Zoe Parsons, Head of Marketing at REG Technologies: “Traditional methods of handling compliance are not only straining resources but also slowing down firms’ speed to market and making them increasingly vulnerable to fines and reputational damage.”

Luke DiRollo, CEO of Almis International also recognises the heavy cost firms could pay in case they fail to comply with regulators’ laws.

DiRollo further argues that regulatory reporting is often treated as a standalone, low-value exercise, with data rarely reused and disconnected from core risk management. He explains it was originally designed as a supervisory tool, to give regulators a consistent, external view of banks’ health, rather than to support internal decision-making.

He also explains that while regulatory metrics have been highly effective in improving transparency and financial stability from a supervisory perspective, banks struggle internally because the required data is fragmented and not easily reusable. This turns reporting into a manual, time-consuming process focused on extracting and reconciling data rather than analysing it, making it feel like a burden rather than a valuable tool.

While he gave banks as an example, the same challenges apply to other financial services and insurance firms where data fragmentation, manual reporting and legacy processes are a major holdback.

Zoe reaffirms that nearly 70% of insurance compliance professionals have seen regulatory demands increase over the past year, with firms struggling to manage complex reporting and oversight. These challenges are made worse by fragmented systems and continued reliance on manual processes.

Manual regulatory tracking is becoming increasingly unmanageable as the volume, speed and complexity of regulatory change outpace what compliance teams can realistically manage.

Firms still rely on labour-intensive processes to monitor multiple sources and counterparties, leaving them exposed to errors, delays and outdated information.

Supradeep Appikonda , COO and co-founder of 4CRisk.ai, argues that the gap between rapid regulatory change and manual capabilities is now too wide, creating both inefficiencies and real operational risk.

In response, AI-driven tools are transforming the process, analysing vast amounts of regulatory data far faster and more consistently, while helping reduce information overload.

Scott Nice, CRO at Label adds that the challenge is no longer just tracking updates, but understanding their deeper impact across organisations. Regulatory change now requires firms to adapt processes, data, and operations in a coordinated way, something legacy processes can no longer support effectively.

Importantly, Regulatory intelligence is becoming both essential and a competitive differentiator, with firms that adopt advanced compliance capabilities improving risk management, resilience and stakeholder trust.

Leading firms are going further, using regulatory intelligence not just to react, but to anticipate change, adapt faster and gain commercial advantages such as quicker product launches and stronger client confidence. This shift is supported by integrated technologies that turn compliance into a coordinated, real-time function, ensuring financial services firms are compliant at all times.

CYBER

Capitalising on the Soft Cyber Market Before Conditions Shift

The cyber insurance market remains favourable for buyers, but brokers are being urged to think ahead as risks such as data breaches and business disruptions increase.

Rather than focusing on short-term premium savings, experienced brokers like Jack Petts emphasise the need to strengthen clients’ coverage now, before underwriting tightens and terms become more restrictive.

Daniel Wood, news editor at Insurance Business Mag emphasises that the bigger risk isn’t just a cyberattack itself, but the operational fallout, where businesses are unable to function due to events like ransomware, outages or system failures.

While conditions are currently soft, warnings suggest that a major cyber incident could quickly shift the market, making it more restrictive for buyers.

Petts argues that cyber risk is shifting from a data breach issue to a business continuity threat, with outages driving the most severe losses. Allianz research supports this: business interruption claims are over 650% more costly than those without disruption, ransomware accounts for around 81% of such incidents, makes up 60% of large claims above €1 Million and ransom demands have risen by 47% in 2025.

Finally, Petts outlines three key cyber priorities brokers should address with clients now, rather than waiting for market conditions to tighten:

  • Secure stronger policy wording: Lock in clearer business interruption, cyber liability, system failure, and contingent business interruption cover while the market is still soft, especially given rising third-party dependency risk and frequent supply-chain incidents.
  • Improve cyber resilience: Help clients strengthen security posture, as insurers increasingly price risk based on maturity, with rising investment in cybersecurity driven by faster, more sophisticated attacks.
  • Review limit strategy: Move away from historical or budget-based limits and instead base coverage on actual exposure, including downtime, vendor reliance and digital revenue dependence.

Overall, Petts warns that brokers should use the current favourable market to prepare clients for a more restrictive environment ahead, rather than risking underinsurance later.

REG UPDATES

REG Technologies Achieves SOC 2 Type I Certification and Passes ISO 27001 Surveillance Audit

REG Technologies has announced the successful completion of its SOC 2® Type I audit in March 2026, alongside passing its latest ISO/IEC 27001:2022 surveillance audit in the same month, reinforcing its continued commitment to robust cybersecurity governance and operational resilience.

The SOC 2 Type I report provides independent validation of REG’s internal controls relating to security, availability and confidentiality, while the ISO 27001 surveillance audit confirms the ongoing effectiveness of its Information Security Management System (ISMS), originally certified in 2024.

Together, these milestones demonstrate that REG’s security framework is not only established but continuously maintained and assessed against internationally recognised standards.

REG’s security journey predates its ISO 27001 certification, with the company having first achieved Cyber Essentials certification in 2019. While Cyber Essentials is no longer a strategic focus, its early adoption reflects a longstanding proactive approach to information security and secure engineering practices.

“Security at REG is designed into our platforms and operating model from the outset,” said Diogo Xavier Luís, Chief Technology Officer at REG Technologies. “Independent certifications such as ISO 27001 and SOC 2 provide our customers with confidence that our controls are implemented, tested and continuously improved in line with evolving threats and regulatory expectations.”

Operating in highly regulated insurance markets worldwide, REG recognises that trust is built through verifiable governance and ongoing assurance. “Our goal is not only to meet recognised security standards, but to demonstrate ongoing accountability through audit, surveillance and transparent risk management practices,” added Luís.

REGULATORY

PRA Targets Funded Reinsurance Risk

The Prudential Regulation Authority (PRA) has published new proposals that would change how funded reinsurance transactions are treated by UK life insurers. 

Funded reinsurance involves a UK life insurer paying a large upfront premium to a reinsurer in return for future payments. Under the PRA’s plans, these arrangements would be treated more like other investments held by UK life insurers, addressing what the regulator describes as a regulatory inconsistency.  

The proposed changes mean UK life insurers using funded reinsurance would be expected to hold capital that better reflects the risk of their reinsurance counterparty defaulting. This would be particularly relevant where the reinsurer has a lower credit rating or where the collateral held is considered riskier. 

The PRA said funded reinsurance is growing quickly and could undermine insurer resilience if not managed properly. Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of the PRA, said the proposals are designed to address the difference in regulatory treatment for these deals, while protecting pensioners and improving insurers’ incentives to invest directly in the UK economy. 

The announcement follows the growth of the Bulk Purchase Annuity market, where UK insurers take on responsibility for paying members’ pensions from defined benefit pension schemes. Many life insurers operating in this market are increasingly using funded reinsurance, often with offshore reinsurance counterparties. 

The PRA’s proposals would apply to business from 1 October 2026 onwards, but would not apply to business already executed or completing shortly. It has also been reported that payments to insurance policyholders would remain protected by the Financial Services Compensation Scheme. 

REG UPDATES

MGAA Conversations Podcast With Nathan Banfield

The latest episode of the MGAA’s flagship podcast series brings a timely and insightful discussion to the forefront of the insurance conversation. In Episode 32 of MGAA Conversations, titled “Counterparty Risk: Why Smart MGAs are Raising the Bar,” industry experts come together to unpack one of the most pressing challenges facing MGAs today: how to effectively manage counterparty risk in an increasingly complex and fast-moving landscape.

Featuring Nathan Banfield, Head of Customer Success at REG Technologies, alongside Sonia Stanton from Pro Global and Richard Marshall of Antares, the episode dives into how MGAs and insurers can stay ahead of evolving risks while maintaining regulatory confidence and operational efficiency.

At the heart of the discussion is a clear message: traditional “set-and-forget” approaches to counterparty risk are no longer fit for purpose. As the panel highlights, the speed and scale of today’s insurance ecosystem—combined with growing reliance on digital infrastructure—means that risks are not only more complex but also more dynamic. As noted in the episode, “the days of onboarding a partner and reviewing them once a year are behind us — risk doesn’t stand still, so neither can we.”

Nathan Banfield brings a particularly compelling perspective from the regtech space, emphasising the role of technology in transforming how firms approach onboarding and ongoing oversight. He highlights that, “technology isn’t just about efficiency — it’s about giving firms the visibility and confidence to make better decisions, faster.” He further reinforces the importance of continuous monitoring, adding that “having access to real-time, standardised data changes the game when it comes to identifying and acting on risk.”

The conversation also explores the concept of “future-proofing” risk frameworks. With regulatory expectations continuing to evolve, MGAs must ensure their processes are not only compliant today but adaptable for tomorrow. This includes leveraging technology to centralise data, standardise assessments, and maintain a clear audit trail across the distribution chain. As discussed, “firms that invest in scalable, data-driven frameworks now will be the ones best positioned to respond to whatever comes next.”

Importantly, the episode doesn’t shy away from emerging threats. From cyber vulnerabilities to increasingly complex third-party relationships, the panel discusses how even the most agile firms can be caught off guard without the right systems in place. One key warning from the discussion stands out: “it’s often the risks you can’t easily see — across extended networks and third parties — that cause the biggest issues.” The takeaway is clear: resilience in today’s market requires a proactive, tech-enabled approach to risk management.

This episode also underscores the ongoing collaboration and thought leadership fostered by the Managing General Agents’ Association (MGAA). As a Silver Sponsor of the MGAA, REG Technologies continues to support initiatives that drive innovation, education, and best practice across the MGA community. This partnership reflects a shared commitment to helping the market navigate regulatory complexity while unlocking new opportunities for growth.

For MGAs, insurers, and industry professionals alike, this episode offers valuable insights into how counterparty risk management is evolving—and what it takes to stay ahead. As one final takeaway from the episode puts it: “the bar is being raised — and those who embrace smarter, more connected approaches to risk will be the ones who lead the market forward.”

CYBER

UK Firms Struggle to Track AI Data Overseas

Many large UK organisations are losing sight of how their data is used once it enters AI systems abroad, raising concerns around governance, compliance and risk. 

Recent surveys from Harbr Data show that 61% of UK firms cannot fully explain how sensitive data is handled after it is processed by AI tools outside the country. The findings highlight a clear gap between the pace of AI adoption and the ability to maintain proper oversight. 

Cross-border data use is now routine. Nearly three quarters of businesses surveyed said their data is processed overseas by AI systems at least weekly, with a significant number reporting this happens daily. What was once occasional has become embedded in day to day operations. 

However, visibility has not kept up. Many organisations struggle to track where data goes, how it is used, and what safeguards are in place once it leaves domestic systems. This creates uncertainty around compliance, particularly when data is subject to different regulatory requirements across regions. 

Limited oversight increases the likelihood of data breaches, regulatory scrutiny and financial penalties. It also raises concerns around data misuse, especially where information could be unintentionally exposed or incorporated into AI models. 

Confidence in managing this risk varies by geography. While organisations generally feel more assured operating within the UK and Europe, confidence drops significantly when data is processed in other regions, where legal frameworks and protections may differ. 

The findings come at a time of increasing regulatory focus on AI and data use. As rules tighten and scrutiny increases, businesses are under greater pressure to demonstrate control, accountability and transparency in how data is handled across borders. 

For firms operating in regulated sectors, this is becoming a key priority. Ensuring clear oversight of data flows and strengthening governance frameworks will be critical to managing risk and maintaining trust as AI continues to scale. 

ESG

Second MenB Dose Rollout Begins After Kent Outbreak

The NHS is offering second doses of the MenB vaccine to around 12,000 people following last month’s meningitis outbreak in Kent. The outbreak led to two deaths and 19 confirmed cases in a short period. 

In response, a targeted vaccination programme was launched for people believed to be at higher risk of exposure. This included students living in university halls in Kent, individuals linked to Club Chemistry nightclub, where the outbreak is thought to have originated, and later some sixth form students at schools and colleges where confirmed or probable cases had been identified. 

The MenB vaccine is given in two doses, and NHS Kent and Medway has confirmed that second-dose appointments will begin in April. Clinics are due to open in Canterbury, Faversham and Ashford, with eligible individuals able to book through an online system. According to NHS guidance, the second dose should be given at least four weeks after the first, although it can be administered later if needed. 

Alongside the vaccination campaign, preventative antibiotics were also offered to a wider group, with large queues seen at the University of Kent as students waited for treatment. The scale and speed of the response reflected the seriousness of the incident, with the UK Health Security Agency declaring a national incident to support access to key resources, including antibiotics. 

The outbreak has also reopened questions around wider vaccination policy. Since 2015, the MenB vaccine has been part of the routine NHS schedule for babies and young children, but a broader catch-up programme for teenagers was previously ruled out on cost-effectiveness grounds. Teenagers currently receive the MenACWY vaccine, which protects against four other meningococcal groups but not MenB. 

Following the Kent outbreak, Streeting has asked the Joint Committee on Vaccination and Immunisation to review that earlier decision, raising the prospect of further debate over whether MenB vaccination should be expanded to older age groups. 

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