Brokers failing on delegated authority
FCA says intermediaries and insurers did not appear to have adequately considered their regulatory obligations.
The Financial Conduct Authority (FCA) has criticised the insurance sector for its delegated authority arrangements.
Its thematic review of the arrangements found that in many cases insurers and intermediaries did not appear to have adequately considered their regulatory obligations in relation to both outsourcing and other functions.
Delegated authority is widely used in the UK general insurance market. This can include outsourcing of underwriting and claims handling and the allocation of other
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