Life - Articles - KPMG response to FCA's report into the life insurance sector

 "Today's announcement from the FCA brings some welcomed clarity for the industry following a period of uncertainty since the Thematic Review was announced in April 2014. Not only does it appear that the FCA will take specific action in the industry, the review also indicates that they are going to broaden their activity across the wider market and deepen the focus in areas of particular concern. 

 “Traditional life and pension providers are already dealing with a number of regulatory changes which fundamentally challenge existing business models. The requirement for firms to give additional clarity to customers will present further operational challenges and cost, to an already packed agenda. For those firms that use this challenge to embrace new technology and innovation the short term cost may well be outweighed by the longer term benefits of greater customer engagement and operational efficiency. There are examples of firms who have grasped the nettle over the last 18 months and have really embraced the transition to a more customer centric, simple and transparent, digitally enabled business model. Others are yet to begin what could prove to be a revolutionary change."