Which regulatory body is responsible for consumer protection in the insurance sector?

The Financial Conduct Authority (FCA) is the regulatory body responsible for ensuring that consumers are adequately protected within the insurance sector. The FCA's primary function is to oversee and regulate financial firms, including insurance companies, to ensure that they operate fairly and transparently. This includes enforcing standards that promote competition and protect customers' interests, while also ensuring that firms treat their customers fairly and deliver the appropriate products and services.

The role of the FCA encompasses a wide range of activities, such as setting rules that financial institutions must follow, monitoring compliance, and taking enforcement action when necessary. By focusing on consumer protection, the FCA aims to enhance the trust and integrity of the financial and insurance markets.

While other entities have specific roles in the financial system, they do not hold the same comprehensive responsibility for consumer protection in the insurance sector as the FCA does. For example, the Prudential Regulation Authority (PRA) primarily focuses on the stability and prudential regulation of financial institutions, while the Financial Ombudsman Service (FOS) resolves complaints between consumers and financial services firms after issues arise. The Treasury, on the other hand, is involved in the overall economic policy and financial legislation rather than direct consumer protection in insurance.