FCA Deputy CEO Sarah Pritchard’s Strategic Perspective on Insurance
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At the 2026 ABI Annual Conference, FCA Deputy Chief Executive Sarah Pritchard presented a strategic overview of the insurance sector from a senior executive perspective. She highlighted insurance’s critical role in consumer financial protection, corporate risk management, and economic resilience, emphasizing that executives must balance growth initiatives with regulatory compliance and market trust.
Pritchard’s Strategic Priorities
Driving Innovation
Pritchard emphasized that FCA provides a safe environment for insurers to test new products and business models through the AI Lab, Regulatory Sandboxes, and the Scale-up Unit. While nearly 3,000 firms have engaged with these innovation pathways, only 208 were from insurance, indicating significant room for sectoral experimentation. Successful examples include a bike insurance product with premiums based on actual claim costs and capped coverage, illustrating effective regulatory support for scalable innovation.Building Consumer Trust
Pritchard stressed that innovation must go hand in hand with consumer trust. She cited FCA data showing approximately 66% of consumers exhibit low trust in insurance, signaling that executives should focus on transparent product design, streamlined claims handling, and strict implementation of the Consumer Duty. She noted that FCA has intervened where firms fall short, including halting unsuitable product sales and securing compensation measures.Balancing Growth and Compliance
Pritchard highlighted that market expansion should leverage existing regulatory frameworks to optimize governance and risk management rather than relying on new blanket rules. She encouraged executives to focus on retail market competition, international regulatory expectations, and protection gaps for underinsured populations to ensure growth aligns with consumer protection.
Pritchard’s remarks provide clear guidance for insurance executives: drive growth through innovation, enhance trust through customer-centric operations, and maintain sustainable practices within regulatory frameworks to strengthen long-term market value and brand reputation.
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