Insurance Law, Regulation and Compliance
Regulatory framework
Understand the role of the prudential and conduct regulators, and the distinction between prudential requirements (capital, solvency, governance) and conduct requirements (fair treatment of customers, product oversight, complaints handling). Know the senior managers and certification regime, fitness and propriety, and the responsibilities of key function holders.
Compliance in practice
Know the requirements for financial crime prevention, sanctions screening, data protection, and outsourcing. Understand the consumer duty and the requirement to act in good faith and deliver fair value. Know the rules on complaints, the Financial Ombudsman Service, and the compensation scheme limits.
Traps
Questions often confuse prudential and conduct objectives, or test whether a breach of a rule automatically gives a private right of action (it usually does not). Another trap is the treatment of appointed representatives and the principal firm's responsibility for them.
Worked example
A broker outsources claims handling to a third party. The regulated firm remains responsible for the outsourced activity and must notify the regulator where required. Rule of thumb: outsourcing transfers the task, not the regulatory accountability.