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The UK Government is taking significant strides to simplify business regulations, as demonstrated by the recent meeting between the Chancellor and top regulatory leaders in Downing Street. On March 17, an ambitious action plan was unveiled, aiming to slash the administrative costs of regulation on businesses by 25%. This initiative underscores the commitment to making Britain a premier destination for business and economic growth.
Corporations are increasingly overwhelmed by the intricate reporting obligations they face, and insurance companies are no exception. This column delves into the demanding yet essential task of regulatory reporting, which often diverts C-suite executives from focusing on their clients to navigating bureaucratic challenges.
What is the real value of these reports? This question has been at the forefront of discussions with the Financial Conduct Authority (FCA). Our members, spanning from large enterprises to small and medium-sized enterprises (SMEs), encounter relentless data requests from the regulator, sometimes receiving up to 47 requests annually, as shared by one SME member.
Efforts to streamline reporting are central to the British Insurance Brokers’ Association (BIBA) Manifesto. We have proposed 11 actionable strategies to alleviate the reporting burden, ultimately enhancing productivity and supporting the FCA’s Secondary Growth and Competitiveness Objective. Implementing these measures would not only increase operational efficiency within the insurance broking sector but also ensure improved customer outcomes, a core demand of the Consumer Duty.
Brokers acknowledge the necessity of the FCA’s transition to a data-driven regulatory approach and welcome the adoption of technology to make regulatory reporting more efficient. However, the utility of the collected data is paramount—it must be timely and genuinely actionable. The recent introduction of a ‘single sign-in’ feature marks a significant improvement for firms navigating the FCA’s website.
Over the past year, BIBA has engaged in productive dialogues with the FCA, and we are encouraged by their new five-year strategy, which prioritizes reporting reforms. The retirement of certain reports is a promising step forward. My recent interaction with a leading figure at the International Association of Insurance Supervisors (IAIS) highlighted their potential role in ensuring that the reporting requirements of their 200 member regulators remain balanced and not overly burdensome.
In a recent meeting with City Minister Emma Reynolds, the issue of reporting was a focal point. I firmly believe that the time is ripe for a comprehensive overhaul of reporting requirements, aligning with the Government’s ‘Radical action plan to cut red tape and kickstart growth’. This effort requires prompt action to maximize its impact on fostering a business-friendly environment.
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