MS17/2: Wholesale Insurance Broker Market Study

Terms of reference
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Interim report
Q1 2019

We have published the terms of reference for our Wholesale insurance broker market study, which will consider how competition is working in the sector. The FCA wants to ensure that the sector is working well, and fosters innovation and competition in the interests of its diverse range of clients.

Show MS17/2.1 terms of reference (PDF)

Our market study

The London insurance market is one of the world’s leading centres for large scale, complex commercial and specialist risks.  There have been significant changes in the wholesale insurance sector in recent years which has seen brokers developing new services and business practices. The FCA plans to explore how competition is currently working and whether it could work better in the interests of clients.

In the study, we will:                     

  • Look at how brokers compete in practice and whether they use their bargaining power to get clients a good deal.
  • Assess what conflicts of interest exist, how they are managed and how they affect competition and client outcomes.
  • Examine how broker conduct impacts on competition in the sector.

Next steps

This consultation has now closed. At the time of publication of the Terms of Reference we aimed to publish an interim report by autumn 2018. Following consultation we now aim to publish an interim report in Q1 2019. The interim report will set out our analysis and preliminary conclusions including, where appropriate, possible remedies to address any concerns identified. This will be followed by our final report.

Find out more about how we conduct market studies.