Hundreds of appointed representatives (ARs) have left the general insurance and protection sectors over the past year.
This is according to data from the Financial Conduct Authority (FCA), which revealed that while ARs operating in these sectors continue to be a key contributor of revenue, their numbers have significantly diminished during the past year.
According to the regulator, since 2011, the population of ARs operating in general insurance and protection has been gradually decreasing, while the number of ARs operating in consumer finance has been growing.
The sector witnessing the biggest increase from 2025 to 2026 was consumer finance, which added 114 ARs (up 2.5%). However, general insurance and protection saw the largest decrease, losing 346 ARs during the year (down 4.8%).
But the FCA data also indicated that the largest contributors to regulated revenue in 2025 remained general insurance and protection (£4.0bn), consumer finance (£3.3bn), consumer investments (£2.8bn) and investment management (£1.9bn).
ARs also generated around £24.5bn in non‐regulated financial services revenue in 2025. While £8bn came from wholesale financial markets ARs and £3.7bn from consumer finance, £9.3bn was generated from general insurance and protection.
Increased scrutiny
ARs have come under increased scrutiny in recent years.
In April of this year, the FCA’s supervisory work related to inactive ARs resulted in networks removing 11 firms.
And in August of last year, a Treasury overhaul of the sector resulted in new rules requiring authorised firms to secure permission from the FCA to begin using ARs.
Protection under the Financial Ombudsman Service (FOS) was also extended for consumers where an AR engaged in a regulated activity which the principal had not accepted responsibility for.
Though the Treasury did reject calls from MPs and Peers to cut the ‘confusing’ regime entirely and confirmed it will continue, saying it played an important part in the supply of financial services and provided substantial benefits to consumers and businesses.
And as far back as December 2021, the FCA said it expected around 10% of ARs to leave the financial services industry following its crackdown on the sector.
