Division 65
Insurance & Pensions
Requirements for all insurance & pensions
These requirements apply to all business activities in this division.
Health and Safety at Work etc. Act 1974 — general duties
Enforced by HSE
Health and Safety at Work etc. Act 1974
General duty to protect employees and others affected by the business — offices, call centres and public-facing operations.
Employers' Liability Insurance
Enforced by HSE
Employers' Liability (Compulsory Insurance) Act 1969
Required for any business employing at least one person.
Data protection (financial data)
Enforced by ICO
Data Protection Act 2018; UK GDPR (retained EU law)
Must register with ICO. Underwriting, claims, medical-underwriting and pensions data is highly sensitive — enhanced security and breach-notification requirements. Subject access requests handled within one month.
Equality Act 2010 — protected characteristics
Enforced by EHRC
Equality Act 2010
No discrimination in employment or in the provision of services. Note the limited insurance exceptions in Schedule 3 Part 5 (assessment of risk by reference to relevant and reliable actuarial/statistical data); the gender pricing exception was removed following the Test-Achats ruling.
Regulatory Reform (Fire Safety) Order 2005
Enforced by LOCAL_FIRE_AUTHORITY
Regulatory Reform (Fire Safety) Order 2005
Responsible person must carry out a fire risk assessment and maintain fire safety arrangements for the premises. Devolved variants: Fire (Scotland) Act 2005; Fire and Rescue Services (NI) Order 2006.
FCA + PRA authorisation under FSMA 2000 (effecting/carrying out insurance)
Enforced by PRA
Financial Services and Markets Act 2000; Financial Services and Markets Act 2000 (Regulated Activities) Order 2001; Financial Services and Markets Act 2000 (PRA-regulated Activities) Order 2013
General prohibition (s.19): criminal offence to carry on a regulated activity without authorisation — up to 2 years imprisonment and/or an unlimited fine (s.23). 'Effecting' and 'carrying out' contracts of insurance (articles 10-12 RAO) are PRA-regulated activities (FSMA (PRA-regulated Activities) Order 2013). Insurers are dual-regulated: PRA for prudential soundness, FCA for conduct.
Senior Managers and Certification Regime
Enforced by FCA
Financial Services and Markets Act 2000; Financial Services Act 2012
Insurers operate the dual-regulated insurance SM&CR. Senior managers (PRA-designated and FCA-designated SMFs, e.g. Chief Actuary, Chief Underwriting Officer, With-Profits Actuary) require regulatory approval. Certification staff assessed annually for fitness and propriety. Conduct rules (COCON) apply to almost all employees.
Financial promotions compliance (s.21 FSMA)
Enforced by FCA
Financial Services and Markets Act 2000; Financial Services and Markets Act 2000 (Financial Promotion) Order 2005; Financial Services and Markets Act 2023
Restriction on financial promotions: communications inviting investment/insurance activity must be made or approved by an FCA-authorised person or fall within an exemption. FSMA 2023 introduced the FCA s.21 approver gateway.
Complaints handling (FCA DISP) and FOS jurisdiction
Enforced by FCA
Financial Services and Markets Act 2000
Written complaints procedure; acknowledge within 5 business days, resolve within 8 weeks. Unresolved complaints from eligible complainants may be referred to the Financial Ombudsman Service. Biannual complaints reporting to FCA.
FCA Consumer Duty (Principle 12)
Enforced by FCA
Financial Services and Markets Act 2000
Effective 31 July 2023 (new/existing products), 31 July 2024 (closed products). Four outcomes: products and services, price and value, consumer understanding, consumer support. Annual board-level assessment. Insurers as product manufacturers must meet product oversight and governance (PROD) and fair-value requirements.
Operational resilience requirements
Enforced by FCA
Financial Services and Markets Act 2000
FCA PS21/3 / PRA PS6/21: firms must identify important business services, set impact tolerances, and remain within tolerances. Ongoing self-assessment and third-party/outsourcing oversight required.
Solvency UK prudential capital regime
Enforced by PRA
Insurance and Reinsurance Undertakings (Prudential Requirements) Regulations 2023; Financial Services and Markets Act 2000; Financial Services and Markets Act 2023
Insurers and reinsurers must hold capital to meet the Solvency Capital Requirement (SCR) and Minimum Capital Requirement (MCR), value assets/liabilities on the prescribed basis, and produce the ORSA. The UK regime (Solvency UK) reforms retained Solvency 2 — risk margin reduction and matching-adjustment changes under the Solvency 2 Regulations as amended via FSMA 2023 powers. Annual regulatory returns and a Solvency and Financial Condition Report (SFCR) to the PRA.
Financial Services Compensation Scheme membership
Enforced by FCA
Financial Services and Markets Act 2000
Authorised insurers participate in the FSCS. Long-term (life/pensions) insurance protected at 100% with no upper limit; general insurance at 90% (100% for compulsory classes such as motor third-party and employers' liability). Funded by an annual levy on authorised firms.
Insurance contract law duties (fair presentation / consumer disclosure)
Enforced by FCA
Insurance Act 2015; Consumer Insurance (Disclosure and Representations) Act 2012
Insurance Act 2015 governs the insured's duty of fair presentation, proportionate remedies for non-disclosure/misrepresentation, warranties and fraudulent claims for non-consumer contracts; the Consumer Insurance (Disclosure and Representations) Act 2012 sets the consumer-policyholder regime. Underpins how insurers may decline or reduce claims.