The CEO of the Financial Conduct Authority (FCA) has written to the Prime Minister suggesting the regulator could set new digital service standards which could include requiring firms to accept electronic verification of death to speed up bereavement claims in insurance.
The proposal features among a number of recommendations from Nikhil Rathi (pictured) to help create a new approach to ensure regulators and regulations support growth.
The letter also includes a proposal to remove the requirement for a Consumer Duty Champion and ensure future consultations on consumer protection ask if the Consumer Duty is sufficient rather than new rules.
It also proposes to review the proportionality of reporting requirements and remove redundant returns, initially expected to benefit 16,000 firms.
In November 2024, the FCA told life insurers to settle death claims quicker and improve how they monitor claims times or face further action.
It demanded significant improvements with many insurers failing to meet performance levels, called for industry-wide approaches to tackle common concerns and challenged insurers to reflect on the standards they set and quality of outcomes.
And it demanded that claimant service should be as good as that for sales.
The following month the regulator also identified fair value outcomes, including the impending pure protection market review, and claims handling within life insurance as part of its ongoing priorities for the Consumer Duty.
It added it will also be reviewing the outcomes for vulnerable customers across the industry and how outcomes are monitored.
