The Financial Conduct Authority has published a letter setting out its supervisory strategy for Lloyd’s and London Market insurance intermediaries and managing general agents. The regulator said it wanted to see a wholesale market that worked well for all stakeholders and preserved the sector’s integrity.

The FCA said its focus for LLMI firms was product suitability and price transparency, promoting certainty of insurance cover, culture and resilience.

It wrote: “The wholesale insurance market has made some progress towards delivering good outcomes for customers, for example in relation to how they considered the expectations set out in the guidance in our pandemic related work. We also recognise the industry’s commitment and the actions taken by some, to date, on driving change and reducing the impact if climate chance.

“However, our view in terms of the treatment of customers, is that firms in the portfolio have not fully embraced our key messages (for example around product oversight or firm culture and purpose) or kept up with the pace of regulatory change. We are also disappointed on the progress made on diversity and inclusion, where firms still require substantial changes, both as employers and in serving the diverse needs of customers.”

The FCA added: “To maintain the integrity and reputation of the market, the Senior Managers & Certification Regime will underpin our interactions with firms, and we will gold Senior Management Function holders accountable where they fail to take reasonable steps to prevent breaches of our requirements.”

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