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Dear CEO | Release Date: 20th September 2023

To read a longer summary of this Dear CEO letter, click here.

To access the original FCA document, click here.

Short Summary

The Financial Conduct Authority (FCA) has outlined its strategic priorities for the insurance market from 2023 to 2025, focusing on the life insurance sector and broader insurance market. This guidance addresses the ongoing challenges within the market, including economic pressures, technological advancements, and the effects of climate change.

Key Priorities and Focus Areas:

Operational Resilience: Insurance firms are expected to enhance their operational resilience, particularly in managing outsourced services and ensuring robust contingency plans are in place.

Consumer Duty Implementation: Firms must ensure products and services offer fair value and meet consumer needs. The FCA emphasises transparency in pricing and the fair treatment of customers throughout their service interactions.

Governance and Culture: The FCA calls for improved governance and culture within firms, urging them to foster a diverse and inclusive workforce that understands and meets consumer needs.

Market Conduct: Issues such as settlement delays, insufficient identification of vulnerable customers, and unfair pricing practices are highlighted as areas needing urgent attention.

Regulatory Actions:

The FCA will use various tools, including mystery shopping, to assess firms’ compliance with regulatory standards. Non-compliance will prompt strict enforcement actions to ensure firms meet their obligations and address any failings.


Insurance firms are urged to proactively address these priorities to improve consumer outcomes and operational effectiveness. The FCA’s strategy aims to maintain a resilient, fair, and effective market that adequately supports consumers and contributes positively to the UK economy.

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