The insurance industry is no stranger to change. Every year springs a new set of challenges or opportunities and 2024 is no exception. As a UK insurance provider, staying ahead of regulatory changes is key to maintaining compliance and providing services and products to our partners. This year, key regulatory changes are set to reshape the industry landscape:
Fair Value and Consumer Duty
The pressing obligation to achieve favourable outcomes for consumers has been reinforced by the FCA, with regulations becoming more stringent. Enforced on 31st July 2023 for open products and services, Consumer Duty forced firms to deliver better outcomes for retail customers while addressing issues that risk causing consumer harm. This includes measures to prevent unfair practices, ensure fair claims handling, and providing greater support to vulnerable customers.
For UK insurance providers, this means reassessing policies and procedures to ensure that they align with these principles and become embedded into day-to-day operations.
AI Regulations
The UK and EU are adopting strategies for regulating for AI that enable businesses to invest in and develop AI, while protecting the public, businesses and consumers from potential harms. While the UK plans to regulate AI sector by sector, the EU have applied a horizontal risk-based framework that applies to all sectors. There has been a huge question of how AI should be regulated. As there is an increase in digital transformation, regulators are continuing to keep up to date by updating guidelines on the use of technology in insurance. This includes the use of artificial intelligence in underwriting, claims processing, and customer service.
It is essential that insurers embrace these technologies to stay competitive while ensuring compliance with new regulations. This involves not only adopting advanced technologies but also understanding the ethical and legal implications of their use, adhering to UK and EU regulations.
Enhanced Cybersecurity Regulations
With the increasing threat of cyberattacks, 2024 will continue to see stricter cybersecurity regulations coming into force. With insurers highly accessible to confidential data, these regulations require insurers to implement more comprehensive cybersecurity measures to such sensitive data. This includes regular security reviews, mandatory reporting of breaches, and more stringent requirements for access to sensitive data.
For insurers, this presents both a challenge and an opportunity. On one hand, it requires significant investment in cybersecurity and training for employees. On the other hand, it offers a chance to adapt to these changes that are shaping the industry, demonstrating a strong commitment to protecting client data, building trust and loyalty.
At Acasta Europe, we hold a Cyber Essentials Plus certification, which reflects our commitment to data security. Throughout the development journey of our new sales platform, measures have been implemented to protect the integrity and confidentiality of data at every stage. We work with insurance brokerages third party administrators, insurance wholesalers, warranty providers and MGAs, changing the way that they work. Contact us today to discover how we can enhance your operations with our secure and innovative solutions.