"FCA insurance chief says ‘it is time to evolve’ for the industry"

The Financial Conduct Authority (FCA) has signalled a renewed commitment to collaboration with the insurance sector, emphasising that 2026 represents a pivotal year for evolution within the industry.

Speaking at the launch of the British Insurance Brokers’ Association (Biba) 2026 manifesto at the Houses of Parliament on 14 January 2026, Lisa Sturley, head of insurance at the FCA, highlighted the regulator’s focus on clear communication, efficiency, and proportionate engagement with firms.

“It is time to connect, time to engage, time to support, and I am going to add one more – it is time to evolve,” Sturley said. “For us, this means continuing to modernise our supervisory model, making it predictable, purposeful, and proportionate.”

Sturley outlined key priorities for the FCA in the coming year, which include reducing unnecessary correspondence, streamlining reporting processes, and providing firms with more dedicated contacts. The regulator aims to issue fewer ad hoc letters and instead deliver annual market reports that clearly signal its focus areas, allowing firms to plan and adapt with greater certainty.

Biba’s 2026 manifesto reflects the views of insurance brokers nationwide. A recurring theme in consultations was the need to support brokers in enhancing efficiency and simplifying compliance processes. Biba’s recommendations to the FCA emphasise:

Continuation of efforts to simplify insurance rules

Further reduction and clarification of the rulebook

Streamlined reporting requirements to ease administrative burdens

Sturley echoed Biba’s theme, saying:

“We are committed to being a smarter regulator. This includes clearer priorities, more focused engagement, and fostering a relationship that helps the industry thrive rather than burden it.”

The FCA’s renewed approach reflects a broader regulatory shift toward proportionate oversight and collaboration, signalling a year of modernisation and evolution for the insurance sector. Brokers can expect a regulator that is more predictable, engaged, and responsive to the needs of the industry, paving the way for a more efficient and innovative market in 2026.