REG Reviews
Last month, AI was introduced to expedite the flagging of misconduct, the FOS strengthened protection for vulnerable customers, LGBTQ+ inclusion concerns rose across insurance and REG joined CNA and KPMG on Insure Tv’s tech modernisation masterclass.
Read these articles and many more as we bring you all the important news and views in the insurance and financial services world…
As stricter non-financial misconduct rules come into force, insurers are expected to increase the use of AI-powered monitoring tools to analyse emails, calls and messages for signs of bullying, harassment or other misconduct.
Former supervisor of surveillance and forensics at the FCA and ex UBS executive Rob Mason said the heightened regulatory focus is likely to drive closer scrutiny of employee communications, helping firms identify potential issues earlier and strengthen compliance oversight.
Being director of regulatory intelligence at Global relay, he highlights that AI tools are becoming increasingly robust that they can detect harmful language in written messages despite the nature of the vocabulary.
Mason further explained that traditional monitoring relied on keyword and phrase detection to flag suspicious communications, but newer AI tools can now analyse full messages and understand context, making misconduct detection far more effective.
He added that insurers are increasingly exploring these technologies to stay compliant and avoid reputational damage.
In 2024, The FCA found that London market firms had the highest reported sexual harassment rates among the studied sectors.
Mason believes the new rules aim to strengthen weak or underused workplace protections across financial services.
He particularly pointed out to Insurance Post: “Whilst there are whistleblowing and ‘stand up, speak up’-type policies, in a lot of these firms, they’re not particularly well-supported,” adding that: ”That is, in the sense people were reluctant to use those whistleblowing channels for fear of retribution or retaliation. Where, if their identity is disclosed, or if they blow the whistle on their boss, then they’re treated really poorly as a consequence.”
Ultimately, Mason concludes that success will depend on insurers treating non-financial misconduct as a core compliance risk, supported by consistent training and rigorous, well-documented procedures across the organisation.
Question that would need to be asked in order to comply with the new rule are: Will technology support insurers in ensuring non-financial misconduct reporting is streamlined? Will there be mandatory internal and external reports that need to be addressed to the regulator?
Time will tell, and expectations will become clearer as we get closer to the 1st of September, the date the new non-financial misconduct rule is coming into place.
Legacy technology has long been a challenge for insurers, but in today’s evolving market, modernising platforms is no longer simply an opportunity for competitive advantage, it’s becoming a business necessity.
This was the central theme of the recent Insure TV Masterclass, Why Modernising Platforms Is No Longer Optional, where industry leaders from REG Technologies, CNA Hardy and KPMG explored how insurers are navigating technology transformation, controlling costs and delivering meaningful business outcomes.
Bringing together Stephen Line, CEO of REG Technologies, Andy Clements, VP Distribution, Marketing & Sales UK & Europe at CNA Hardy, and Matthew Smith, Partner and Global Strategy &
Transformation Lead for Insurance at KPMG, the discussion moved beyond the buzzwords that often dominate conversations around digital transformation and artificial intelligence.
Instead, the panel focused on the practical realities insurers face when modernising legacy systems, embedding organisational change and ensuring technology investments create measurable value.
One of the key themes explored was the growing complexity of the technology landscape. While insurers have access to more solutions than ever before, the challenge is often determining which investments will genuinely solve business problems rather than simply add another layer of complexity. The speakers agreed that successful transformation starts with a clear understanding of business objectives, rather than a desire to adopt the latest technology trend.
The conversation also examined how organisations can maintain control of technology spend while keeping transformation programmes on track. Insurers are increasingly recognising the importance of defining clear priorities, managing project scope and ensuring investments remain aligned with strategic goals. Rather than attempting large-scale overhauls in a single programme, many firms are seeing greater success through focused initiatives that deliver incremental improvements and tangible outcomes.
Measuring success was another important topic. While financial returns remain a key consideration, the panel highlighted that the true value of transformation often extends beyond direct cost savings. Enhanced customer experiences, improved operational efficiency, stronger data quality and reduced risk exposure all contribute to long-term business performance and resilience.
Artificial intelligence inevitably featured in the discussion, but the speakers were keen to separate genuine opportunities from market hype. Effective AI adoption depends on strong data foundations, governance and clearly defined use cases. Without these fundamentals in place, even the most advanced technologies will struggle to deliver sustainable value.
The session also reinforced that technology transformation is fundamentally a people challenge. New systems alone do not drive change. Successful implementation requires employee engagement, leadership support and a culture that embraces new ways of working. Organisations that invest in change management alongside technology are often better positioned to realise the benefits of their transformation programmes.
Finally, the panel explored the growing influence of regulatory requirements, ESG considerations and data management obligations. As insurers face increasing expectations around transparency, compliance and governance, modern platforms are becoming essential tools for managing complexity while supporting future growth.
Conclusively, the industry is facing evolving customer expectations, regulatory pressures and accelerating technological change, so insurers must ensure their technology infrastructure is capable of supporting both today’s needs and tomorrow’s opportunities. Those that approach transformation with clarity, discipline and a focus on business value will be best placed to succeed.
New financial services legislation has been introduced to Parliament, with the Government positioning the Bill as a way to support growth, simplify regulation and strengthen consumer protection across the UK financial services sector.
The Financial Services and Markets Bill is designed to modernise how the sector is regulated, while helping firms compete more effectively, lend more to businesses and adapt to the needs of consumers in an increasingly digital market.
A key part of the Bill is its focus on reducing regulatory complexity. The Government plans to simplify the regulatory landscape by absorbing the responsibilities of the Payment Systems Regulator into the Financial Conduct Authority. The aim is to reduce overlap for firms, support faster decision-making and make it easier for businesses to grow without unnecessary administrative barriers.
The Bill also includes proposals to reduce the overall burden of the Senior Managers and Certification Regime by 50 per cent. The regime plays an important role in holding senior leaders accountable, but the Government says the reforms are intended to make compliance more proportionate while maintaining core consumer and market protections.
Consumer protection remains a priority as the bill includes measures to modernise redress arrangements, improve the Financial Ombudsman Service process and require terms and conditions to be written in simpler, clearer language. This reflects a wider regulatory shift towards transparency, accessibility and better customer understanding.
Access to financial services is also addressed. Subject to an independent review, the Government will take powers to protect access to face-to-face banking where communities continue to rely on it, particularly in rural areas and among customers who are less digitally connected. The Bill also proposes widening access to credit unions by changing membership rules, supporting the Government’s ambition to double the size of the mutual and co-operative sector.
Economic Secretary to the Treasury Rachel Blake said the Bill would help “unlock even more growth in the sector” while “making red tape less burdensome to business and boosting protections for consumers.”
Net migration to the UK fell sharply in 2025, reaching its lowest level since the pandemic as tighter visa rules reshaped the flow of people arriving for work, study and family reasons.
According to the Office for National Statistics, net migration dropped to 171,000 in the year to December 2025, down from a revised 331,000 in 2024. The fall was largely driven by a significant reduction in non-EU nationals coming to the UK for work, following restrictions on care worker visas and higher salary thresholds for skilled worker routes.
The figures mark a notable shift after the post-Brexit rise in migration, during which the UK’s non-UK-born population increased substantially. People born outside the UK now make up around 19% of the British population, according to the latest estimates.
In total, around 813,000 long-term migrants arrived in the UK in 2025, a 20% fall on the previous year. Of the non-EU arrivals, roughly half came to study, a quarter came for work, and around 14% arrived to claim asylum. These arrivals were offset by 642,000 people leaving the UK, including British, EU and non-EU nationals.
The data also shows that asylum-related migration remained comparatively stable. Around 88,000 people arrived for asylum in 2025, relatively unchanged from the previous year.
The government has pointed to the figures as evidence that recent immigration controls are having an impact, while also signalling that further reductions remain a priority. However, migration experts have noted that the areas of migration most reduced by policy changes, such as skilled work and student dependants, are often those with stronger economic links.
The Financial Ombudsman Service is reinforcing its focus on supporting vulnerable customers affected by financial disputes, with managing director Rachel Lam stressing that this approach is fully integrated into its work rather than an add-on.
She emphasised that vulnerability support does not mean lowering standards, changing outcomes or compromising impartiality, but instead ensuring fair decisions are reached through fair and consistent processes.
Rachel said to Insurance Post that protecting vulnerable customers requires coordinated action across multiple parties including the government, regulators, firms, and redress bodies to identify risk, respond proportionately and prevent harm, with a growing expectation that vulnerability is actively embedded into decision-making to ensure fair outcomes.
She also highlighted that factors such as gender, caring responsibilities, salary inequality, life events and power disparity can shape how vulnerability is experienced, particularly noting women’s disproportionate exposure to harms like economic and domestic abuse, arguing that vulnerability is often driven by circumstance and becomes most evident when processes fail to respond effectively.
The Financial Ombudsman Service has launched a new vulnerability policy embedding support for vulnerable customers into its service design, using a shared responsibility approach and adopting the Money Advice Trust framework to guide fairer, more accessible outcomes.
This framework is based on three main questions as reported by Insurance Post.
The Financial Ombudsman Service has strengthened its response to vulnerability through widespread staff training, specialist support teams, improved data use and collaboration with organisations such as Surviving Economic Abuse, with Rachel stressing that vulnerability is a complex and increasingly widespread issue that must be understood as structural rather than exceptional.
AI, particularly ChatGPT is being used more and more by cyber criminals to commit phishing and fraud crimes at scale, as reported in a webinar hosted by Consilium.
According to a recent QBE research, The proportion of firms reporting at least one cyber incident rose from 53% in 2025 to 59% in 2026, indicating a clear uptick in cyber activity.
Worry about cyber threats continues to run high among UK businesses, with 82% concerned about the year ahead.
At the same time, AI-related incidents are becoming more prominent, with 23% of firms identifying attacks they believe involved AI, particularly through phishing, malware and email compromise, as reported by QBE.
Not only are cybercriminals adopting more advanced ways to attack and scam companies, they’ve also been utilising false non-disclosure agreements tied to illicit transactions, according to Kirsten Maley, director of UK claims at Cowbell.
She said: “There’s some sophistication to that which we don’t always see in phishing attempts,” Maley added, noting that traditional phishing emails were often easier to identify because they were “very clumsily written”.
According to Maley, the key risk for insurers is not just deepfake technology, but how AI tools are making fraud faster and easier to execute. Criminals can now automate targeting and create convincing scams at speed, illustrated by a US case where ChatGPT was used to identify executives and issue fake invoices, as reported by Insurance Times.
Maley added that: “Back in the day you did have to be quite technical to really understand how to get into a network, now there’s ransomware as a service for hire.”
Cyber risk is shifting quickly, with email-based fraud responsible for 31% of claims in 2025, according to Coalition, and phishing now surpassing ransomware in insurer risk rankings, according to Munich Re.
Experts warn that AI is accelerating this trend, with businesses facing a constant stream of new threats as insurers evolve coverage and response capabilities.
In that sense, now insurers are placing greater scrutiny on third‑party risk, focusing on how firms assess critical suppliers, enforce security standards, and monitor ongoing compliance, particularly where vendors are using AI.
Aviva’s research shows a slight 2% decline in brokers actively hiring, though this is a marked improvement compared to the 20% drop seen between 2024 and 2025.
Demand remains relatively strong overall, with 45% reporting increased workforce needs and 49% saying hiring demand has stayed stable over the past year as mentioned by Insurance Post.
The same research found that Local brokers are facing the greatest hiring pressure, with 75% actively recruiting and 53% reporting increased demand for staff over the past year. However, rising salary expectations remain the biggest hiring challenge, with 57% stating they need to offer a higher pay to attract talent.
Professional development plays a crucial role in retaining talent, with 50% of brokers acknowledging it as their top strategy, followed by competitive salaries and benefits at 42%.
According to Michelle Taylor, broker distribution director at Aviva, “It’s brilliant that brokers value professional development so highly, and are seeing their investment translate to a more confident, capable, and committed workforce.”
She concludes that: “People are at the heart of broking, and are what make this industry special. We know brokers are facing into tough conditions, but as always, they’re facing forward – prioritising the long-term development of the talent that is central to their success.”
According to James Cooper, trading director at Everywhen, the new Renters’ Right Act that came into force earlier this month, is a pivotal moment for landlords.
This new law prohibits “no fault” evictions (section 21 of the Housing Act 1988), which requires landlords to end tenancies only with valid legal justification.
Cooper said that removing Section 21 alongside tighter rules on rents, standards and transparency will reshape the rental market, likely benefiting it long-term but requiring landlords to prepare early by reviewing tenancies, insurance plans, rent processes and compliance to adapt effectively.
Rising regulatory changes are increasing the financial risks facing landlords, making insurance more critical than ever; however, around 400,000 UK landlords still operate without any cover, according to the Alan Boswell Group.
Industry experts, including SJL Insurance Brokers, warn that eviction processes have become significantly more expensive, shifting from a few hundred pounds to potentially thousands in legal fees, while lost rental income adds further pressure as reported by Insurance Times.
Although products like rent guarantee and legal expenses insurance can protect against these risks, many landlords have yet to adopt them.
The good news is that more rent guarantee products are being introduced into the market, with industry experts, such as Nick Copley, head of claims at Alps, expecting a shift from optional add‑ons to standard cover.
As eviction processes become slower and more costly, brokers are likely to position rent guarantee insurance as an essential product rather than an optional extra, replacing reliance on legal expenses cover alone.
Growing regulatory pressure is already driving a potential market contraction, with 49% of landlords planning to sell or reduce their portfolios and 82% expressing concern, according to Goodlord.
Ultimately, market professionals warn this could tighten rental supply and increase insurer exposure, likely leading to stricter policy limits and more challenging claims environments as risks around tenant disputes and property damage rise.
MGAs are taking on a more prominent role in specialty insurance distribution as technology, capital investment and underwriting discipline continue to develop across the market.
According to Julia Coakley, COO at the MGAA, the shift has been supported by specialist underwriting expertise, private equity investment and improved technology platforms. These developments are helping MGAs strengthen risk selection, pricing, claims handling and data analytics, while taking greater ownership of portfolio performance.
MGAs have been effective in niche and complex market segments for a long time due to their specialist knowledge. However, more scalable technology is now enabling firms of different sizes to operate with greater efficiency. Improved data processing and analytics are supporting more informed decisions around specialty risk and portfolio management.
Technology is also influencing how MGA products are developed and delivered. Leaner operating models, tailored policy wordings, policy administration platforms, rating engines and API connectivity are helping MGAs build more complete service models for broker partners. This can support faster submissions, quicker quote turnaround and smoother binding processes.
Insurer appetite for MGA partnerships has also continued to grow, with MGAA Market Practitioner membership now including more than 75 risk capital providers. Insurers are increasingly looking for specialist expertise, disciplined underwriting and transparent data to support pricing, risk selection and active portfolio oversight.
As MGAs scale, operational and governance expectations are also increasing. Growth can create pressure around legacy systems, data integration, reporting, policy administration and risk engines. Where delegated authority is involved, firms also need to demonstrate strong compliance, solvency oversight, audit readiness and alignment with carrier expectations.
Julia also highlighted ongoing engagement between the MGAA and the FCA, supporting more detailed discussion around the specific challenges facing MGAs.
As the MGA market continues to mature, technology-led operations, robust governance, transparent reporting and consistent claims performance are set to remain important measures of long-term sustainability.
REG Technologies powers the insurance world to accelerate compliant trade. Helping insurance businesses trade faster, smarter, safer.
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...
Last month, regulators planned to reinforce oversight over MGAs, the FCA announced its AI regulatory reform plans and plans to regulate the crypto assets market, the FCA and FOS tightened complaints framework and MGAA welcomed the launch of REG's new module - REG Risk 365...
Last month, the FCA published its first regulatory priorities 2026 report for insurance, London Market Tech Barometer highlighted tech adoption as key to market leadership, REG has officially launched its REG Risk 365 module and hosted its Risk Intelligence webinar, and the FIS launched its AI assistant to speed up actuarial work and improve risk management. Read these articles and many more as we bring you all the important news and views in the insurance and financial services world…
Last month, BIBA announced its 2026 manifesto, REG appointed Stephen Line as new CEO to support with growth, the PRA set a date for its 2026 Dynamic General Insurance Stress Test and REG has announced its upcoming Risk 365 feature to revolutionise risk management processes...
Last month, the FCA mandated reporting of complaints involving vulnerable customers, cyber insurance prices decreased despite tougher underwriting, FCA figures revealed a sharp drop in insurance AR numbers and UK insurers maintained an ESG focus with tangible impact... Read these articles and many more as we bring you all the important news and views in the insurance and financial services world…
Last month, UK Government proposed cyber resilience bill, insurers led tech workforce employment, insurers focused on turning climate risk into profit and Reeves’ budget outlines impact on insurance industry…
Last month, Which? issued a super complaint against poor insurance practices, the FCA introduced new rules to tackle non-financial misconduct, a talent crisis surfaced amongst the insurance industry and ESG claims came under the spotlight... Read these articles and many more as we bring you all the important news and views in the insurance and financial services world…
Last month, the UK Reform party speculated that it would eradicate the FCA and enable insurers to self-regulate if elected, the UK government planned to trial digital driving licences amid privacy backlash, extreme weather caused significant insurance risks and costs for clean energy development, and REG hosted its Business Profile and Smart Search Webinar to help businesses enhance partner discovery. Read these articles and many more as we bring you all the important news and views in the insurance and financial services world…
Last month, social media influencers reached out to specialist insurers to protect their income and careers, VPN usage increased due to the UK's new age verification rules, tech giants spent more on executive security amid rising threats, and REG announced its upcoming webinar designed to help businesses find partners, boost visibility and trade efficiently. Read these articles and many more as we bring you all the important news and views in the insurance and financial services world…
Last month, regulatory focus on data intensified, with the FCA stressing its role in driving better customer outcomes. Carriers signalled plans to expand MGA partnerships, while AI models emerged as a disruptive threat to price comparison sites. Meanwhile, REG prepared to roll out its new Business Profile and Smart Search features, designed to bring greater visibility, insight, and connection to the insurance market. Read these articles and many more as we bring you all the important news and views in the insurance and financial services world…
Choose a time that suits you and meet one of our experts
Your monthly roundup of news and views in the insurance and financial services world!
"*" indicates required fields
By signing up for newsletter updates you agree to our privacy policy.
