Insurtech UK publishes pre-general election policy roadmap

Insurtech UK has published its policy roadmap in the run up to the UK general election next month on 4 July.

The document aims to highlight policy proposals that would see the UK retain its position as a global leader for insurance innovation.

It sets out how the next government could pave the way for UK insurtech’s to flourish via a regulatory regime that enables more new entrants, an investment environment that facilitates funding and more actions to unlock scaling opportunities.

Insurtech UK chief executive Melissa Collett said: “As we look ahead to a new government forming as soon as next week, now is the time to show the strength of our dynamic insurtech sector and what more can be done to support and scale these fantastic UK companies – especially on their journeys to international expansion.”

Luisa Barile, co-chair of Insurtech UK and chief executive of ManyPets, added that the UK was already home to the world’s second largest insurtech cluster, comprising 280 firms with an estimated combined value of more than $20bn (£15.5bn).

Policy proposals

Insurtech UK made eleven recommendations across three areas in its roadmap document, including regulation and digital transformation, tackling barriers and driving growth and access to finance.

In terms of reccomendations for regulation and digital transformation, the Insurtech UK called on the Prudential Regulatory Authority (PRA) to “maintain its momentum in evolving the regulatory regime” to adapt to the needs and structures of insurtechs that are starting out or scaling.

This included creating a “swifter, more transparent application process for PRA authorisation” as well as “clearer guidance and communications as the new PRA mobilisation regime is introduced and embedded”.

The trade body also recommended that the FCA should work more closely with the insurtech sector to ensure the ongoing availability of “a proper appointed representative (AR) scheme, which allows market access for startups and enables futures innovations in embedded insurance”.

Relatedly, the trade association asked regulators to deploy “a progressive, enabling approach to emerging technologies such as AI”. 

Louise Birriteri, board member and chair of the government affairs committee for Insurtech UK and chief executive of Pikl, added: “We need a better funding environment that enables more investors – both in the UK and from overseas – to get behind good teams with great ideas and the sector will soar even higher.”

Collett noted that she looks forward to ”working with policy makers and regulators throughout the course of the next parliament to achieve our mutual ambitions of the UK being the best place to start and scale new tech companies”.