UK Insurance Regulatory Priorities Report System Officially Launched

UK Regulatory Priorities Reports Officially Replace Portfolio Letters

The UK Financial Conduct Authority released new annual regulatory priorities reports on February 24, 2026, with the first report focusing on the insurance industry. According to the statement issued by the regulator on the same date, the new reports will replace the portfolio letters previously sent to firms across different markets, providing a more concentrated and consistent way to communicate regulatory priorities and upcoming work to regulated firms.

The Financial Conduct Authority said the adjustment forms part of its effort to transform its supervisory approach and simplify regulatory communication. The regulator expects regulated firms to continue complying with rules and to keep up to date with changes in regulatory requirements. It also said that maintaining safe and sound markets requires a clear information delivery mechanism, and that it will reduce the burden on firms in finding and understanding regulatory information wherever possible.

The direct change under the reform is that the number of regulatory communication documents will be reduced from more than 40 portfolio letters to 9 annual sector regulatory priorities reports. The Financial Conduct Authority said some firms previously had to review several letters before determining what actions applied to their business, which increased the complexity of compliance processes. The new sector reports will cover different markets at a higher level and present each priority in content that is easier to read and navigate.

• Source: Financial Conduct Authority; date: February 24, 2026; information: released new annual regulatory priorities reports, with the first report covering the insurance industry.

• Source: Financial Conduct Authority; date: February 24, 2026; information: confirmed that the new reports replace more than 40 portfolio letters and will follow an annual update cycle.

• Source: Financial Conduct Authority regulatory priorities report page; date: March 25, 2026; information: all 9 sector reports were listed in the publication timetable, with the payments report added on that date.

First Report Focuses on Insurance Regulatory Priorities

The Financial Conduct Authority’sRegulatory Priorities: Insurance, published on February 24, 2026, shows that the first regulatory priorities report applies to retail insurers, wholesale insurers, insurance intermediaries, price comparison websites, life insurers and funeral plan providers. The report summarises the 2026 regulatory priorities for the insurance industry as consumer understanding, claims handling, service quality, insurance access, growth and innovation, and regulatory simplification.

The report says insurance is an important part of the UK economy, employing more than 300,000 people. Data cited by the Financial Conduct Authority also shows that 86% of consumers hold at least one general insurance or pure protection product, indicating that the insurance market is closely linked to household financial planning and economic resilience. The report further states that the London insurance market has doubled in size over the past 10 years, with gross written premium reaching US$187 billion, up 17% from 2022.

Regulatory Communication Shifts to Annual Sector Reports

Charlotte Clark, Director of Cross-Cutting Policy and Strategy at the Financial Conduct Authority, said in an article published on February 24, 2026 that the new regulatory priorities reports mark a change in regulatory communication. She wrote:

“Our Regulatory Priorities reports mark a new approach that helps transform our supervision and simplify regulation.”

According to the Financial Conduct Authority, the new reports will be published on an annual cycle, making it easier for firms to track policy and issue developments. Each report will set out the specific regulatory priorities for the relevant sector and the related work that the regulator plans to pursue over the following year. The reports will also provide routes to further information, enabling firms to find regulatory requirements directly relevant to their business in less time.

1. The Financial Conduct Authority first publishes annual regulatory priorities reports by sector.

2. Firms assess which priorities and recommendations apply based on their own business models.

3. Boards and chief executives review the report content.

4. Firms check governance, products, services and compliance arrangements against the regulatory priorities.

5. The regulator updates or adjusts related work priorities according to changes in market risks.

Insurance Priorities Include Claims, Service and Access

In the insurance sector report, the Financial Conduct Authority lists consumer understanding, claims handling and service quality as priorities. The report states that insurance products provide key protection when consumers face losses, but many consumers still experience poor outcomes in the claims process. The regulator requires firms, where applicable, to comply with the Consumer Duty, clearly explain the scope of insurance cover, respond to claims and enquiries fairly, transparently and promptly, and continuously monitor whether products and services deliver the outcomes promised to consumers.

The report also says the Financial Conduct Authority will continue supervisory and enforcement investigations in 2026 into claims handling in home insurance and travel insurance, review firms’ oversight arrangements, and push for improvements in consumer outcomes. The regulator will also analyse how different sales processes affect consumer outcomes and further examine outsourced claims processes, appointed representative models and remuneration arrangements.

Insurance access is also listed as a regulatory priority in the report. The Financial Conduct Authority said access to insurance is related to consumer risk protection and financial resilience, while some vulnerable consumers may still be unable to obtain suitable cover when they need protection. The regulator will take forward relevant actions alongside the UK government’s financial inclusion strategy and the motor insurance taskforce report, while requiring the industry to assess where improvements can be made.

• Improve consumers’ understanding of the scope of insurance cover and reduce cases in which consumers discover after purchase that the cover does not meet expectations.

• Improve claims handling quality and require firms to respond to claims and enquiries in a timely, fair and transparent manner.

• Strengthen monitoring of service quality and test whether products and services deliver the outcomes promised to consumers.

• Improve access to insurance, with particular attention to the protection needs of vulnerable consumers and higher-risk consumers.

• Support innovation and growth, including attention to the impact of responsible use ofAIand other technologies on the insurance market.

Boards and Chief Executives Still Have Review Responsibilities

The Financial Conduct Authority made clear that the new report format does not change the responsibilities of regulated firms. Boards andCEOs should carefully read these reports, review the priorities set out by the regulator and take action where necessary. The regulator said clear regulatory communication can help compliant firms reduce unnecessary burdens and allow supervisory resources to be focused more directly on areas where potential harm is greater.

The insurance sector report also shows that the Financial Conduct Authority plans to expand its dedicated supervision contact arrangements, take a more risk-based supervisory approach to the largest firms, and make data collection more targeted and efficient. The regulator said its goal is to reduce intensive focus on firms that are performing well on compliance, while taking faster and stronger action where consumer harm is greater.

As of March 25, 2026, the Financial Conduct Authority had listed 9 annual sector regulatory priorities reports covering insurance, consumer investments, pensions, retail banking, mortgages, consumer finance, wholesale buy-side, wholesale markets and payments. The regulator said that if new market risks emerge or market conditions change, the supervisory work arrangements may still be adjusted accordingly.

Questions Related to the UK Regulatory Priorities Reports