Ownership of insurers

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Control and governance—insurance

The Financial Services and Markets Act 2000 (FSMA 2000) established a regulatory regime for the financial sector, including insurance. The Financial Services Act 2012 (FSA 2012) established a dual regulatory regime under the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). These arrangements entered into force on 1 April 2013. Both the PRA and FCA are involved in the regulation of insurers and reinsurers in the UK. In general terms, the PRA is responsible for authorising firms to carry out certain activities and the FCA is responsible for regulating the on-going conduct of a firm.

No person may carry on a regulated activity in the UK unless it is authorised to do so or exempt from authorisation (FSMA 2000, s 19). A regulated activity is an activity of a kind specified by the Treasury, which is carried on by way of business and relates to an investment of a specified kind; this includes 'Rights under a contract of insurance' (FSMA 2000, Sch 2 Pt II,

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Latest Insurance & Reinsurance News

IAIS consults on draft Application Paper for insurance sector operational resilience

The International Association of Insurance Supervisors (IAIS) has published a draft Application Paper on operational resilience objectives and toolkit. The paper aims to support supervisors and insurers in assessing and addressing operational resilience in line with the Insurance Core Principles (ICPs), in response to increasing complexity, interconnectivity, and reliance on technology and third-party service providers across the insurance sector. Responses are sought by 29 September 2025 and a public background webinar will be held on 17 July 2025 to present the draft paper and address questions.

ESAs jointly consult on draft guidelines for ESG stress testing in banking and insurance

The three European Supervisory Authorities (the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority—ESAs) have published a joint consultation paper on 27 June 2025 containing draft guidelines for integrating environmental, social and governance (ESG) risks into supervisory stress tests for banks and insurers. Developed pursuant to Article 100(4) of the Capital Requirements Directive (Directive 2013/36/EU) and Article 304c(3) of the Solvency II Directive (Directive 2009/138/EC), the guidelines aim to ensure consistency, long-term considerations and common standards in ESG stress testing methodologies across the EU financial sector. They outline expectations for competent authorities regarding the design, governance and operational features of such stress tests, including the need for relevant expertise, access to high-quality ESG data and appropriate timelines for scenario analysis. Responses are sought by 19 September 2025, with a public hearing scheduled online for 26 August 2025.

Geopolitical instability tops aviation insurers' concerns

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EIOPA publishes first supervisory report on biodiversity risk management by insurers

The European Insurance and Occupational Pensions Authority (EIOPA) has published its first supervisory report examining how EU (re)insurance undertakings are identifying, measuring and managing biodiversity-related risks under the Solvency II framework. The report notes that while some insurers have begun to incorporate biodiversity loss into their risk assessments, integration remains limited and primarily qualitative. Biodiversity loss is described as a complex and multidimensional risk with potential implications for investment values, insured losses and the overall risk profile of insurers’ portfolios. The report also highlights the interconnection between biodiversity and climate-related risks, particularly in relation to natural catastrophes, and observes that approximately 30% of insurers’ corporate bond and equity exposures depend on at least one ecosystem service.

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