CP25/12: Simplifying the insurance rules

Read CP25/12 (PDF)[1]

Why we are consulting

The UK is a world leader and a global hub for commercial insurance, providing expertise in underwriting complex and specialty risks, and handling risks from all over the world.

We want to ensure our rules work well for all the different types of products, providing appropriate protections to consumers whilst supporting innovation and growth. 

Changes we are consulting on:

• Determining which rules apply to commercial insurance.
• Allowing a lead firm to take responsibility for product design and approval.
• Disapplying some rules for bespoke products.
• Allowing firms to determine the frequency of product reviews.
• Removing notification and reporting requirements for employer’s liability insurance.
• Removing the minimum required hours of CPD for employees.

Who this applies to

• insurers and Lloyd’s managing agents
• insurance intermediaries
• firms that provide funeral plans 

Who else will be interested in this consultation:

• industry groups and trade bodies.
• consumer groups and organisations.

Next steps

Online response form[2]

Provide your comments on this CP by 2 July 2025. You can submit your response via the online response form on our website or by:

Emailing: [email protected].

Writing to us at: General Insurance and Pure Protections Risk and Policy, Market Analysis & Policy, Financial Conduct Authority 12 Endeavour Square London E20 1JN.

After reviewing the feedback, we aim to publish a Policy Statement in Q3 2025.

Background

In our January 2025 letter[3] to the Prime Minister we committed to reducing the conduct rules applicable to wholesale insurance.

We followed this with Feedback Statement FS25/2[4] (PDF) in March 2025 which confirmed we would bring forward proposals removing unnecessary or duplicative regulation in the insurance sector.

The proposals in this consultation paper take account of feedback received to Discussion Paper DP24/1[5] (PDF) published in July 2024.