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Market Research Report

Governance, Risk and Compliance - The UK Insurance Industry

Published by GlobalData Product code 334001
Published Content info 118 Pages
Delivery time: 1-2 business days
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Governance, Risk and Compliance - The UK Insurance Industry
Published: November 21, 2019 Content info: 118 Pages

The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) began regulating the insurance industry in the UK in April 2013 under the Financial Services Act 2012. The Financial Services Authority (FSA), an independent non-governmental body with statutory powers from the Financial Services and Markets Act 2000 (FSMA 2000), previously governed the UK insurance industry before the formation of the PRA and FCA. The FSA was responsible for regulating the entire financial services industry in the UK including the insurance industry.

The responsibilities of the FSA were separated between the two new bodies, which are as follows

  • The PRA is a quasi-governmental regulator responsible for promoting the stable and fair operation of the financial system. It performs its operations by regulating all deposit-taking institutions, insurers and investment banks
  • The FCA is a quasi-governmental regulator responsible for overseeing conduct in retail and wholesale financial markets and the infrastructure that supports those markets. The FCA is also responsible for the regulation of firms that do not fall under PRA's scope

Key Findings -

  • Two new regulatory bodies - PRA and FCA, replaced the FSA on April 1, 2013
  • Solvency II came into force in the UK on January 1, 2016, and introduced new risk management standards for insurers
  • The favorable FDI regime allows up to 100% foreign participation in the UK insurance industry
  • Non-admitted insurance is not allowed in the UK. However, insurance companies from other the EEA Member States are permitted to operate in the country and are exempted from authorization
  • Employer's liability and motor third-party liability insurance are the key compulsory classes of insurance

The report "Governance, Risk and Compliance - The UK Insurance Industry" is the result of extensive research into the insurance regulatory framework in the UK. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.

The report brings together research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.


  • The report covers details of the insurance regulatory framework in the UK.
  • The report contains details of the rules and regulations governing insurance products and insurance entities.
  • The report lists and analyzes key trends and developments pertaining to the country's insurance regulatory framework.
  • The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
  • The report provides details of taxation imposed on insurance products and insurance companies.

Reasons to buy

  • Gain insights into the insurance regulatory framework in the UK.
  • Track the latest regulatory changes, and expected changes impacting the UK insurance industry.
  • Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
  • Understand key regulations and market practices pertaining to various types of insurance product.
Table of Contents
Product Code: GDIS0051RR

Table of Contents


  • 1.1 What is this Report About?
  • 1.2 Definitions

2 Governance, Risk and Compliance

  • 2.1 Legislation Overview and Historical Evolution
  • 2.2 Latest Changes in the Regulation
  • 2.3 Legislation and Market Practice by Type of Insurance
    • 2.3.1 Life insurance
    • 2.3.2 Property insurance
    • 2.3.3 Motor insurance
    • 2.3.4 Liability insurance
    • 2.3.5 Marine, aviation and transit insurance
    • 2.3.6 Personal accident and health insurance
  • 2.4 Compulsory Insurance
    • 2.4.1 Employer's liability insurance
    • 2.4.2 Motor third-party liability insurance
    • 2.4.3 Merchant shipping compulsory insurance
    • 2.4.4 National Insurance Scheme
    • 2.4.5 Professional indemnity insurance
    • 2.4.6 Air carriers and aircraft operators insurance
    • 2.4.7 Clinical trials liability insurance
    • 2.4.8 Liability for ships with respect to oil pollution
    • 2.4.9 Construction insurance
  • 2.5 Supervision and Control
    • 2.5.1 International Association of Insurance Supervisors
    • 2.5.2 European Insurance and Occupational Pensions Authority
    • 2.5.3 Prudential Regulation Authority
    • 2.5.4 Financial Conduct Authority
  • 2.6 Non-Admitted Insurance Regulations
    • 2.6.1 Overview
    • 2.6.2 Intermediaries
    • 2.6.3 Market practices
    • 2.6.4 Fines and Penalties
  • 2.7 Company Registration and Operations
    • 2.7.1 Type of insurance organization
    • 2.7.2 Establishing a local company
    • 2.7.3 Foreign ownership
    • 2.7.4 Types of license
    • 2.7.5 Capital requirements
    • 2.7.6 Solvency margin
    • 2.7.7 Reserve requirements
    • 2.7.8 Investment regulations
    • 2.7.9 Statutory return requirements
    • 2.7.10 Fee structure
  • 2.8 Taxation
    • 2.8.1 Insurance premium or policy taxation
    • 2.8.2 Withholding taxes on premium paid overseas
    • 2.8.3 Corporate tax
    • 2.8.4 VAT
    • 2.8.5 Captives
  • 2.9 Legal System
    • 2.9.1 Introduction
    • 2.9.2 Access to court
    • 2.9.3 Alternative dispute resolution (ADR)

3 Appendix

  • 3.1 Methodology
  • 3.2 Contact GlobalData
  • 3.3 About GlobalData
  • 3.4 GlobalData's Services
  • 3.5 Disclaimer
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