FCA’s Claims handling Multi-Firm Review: Pressure mounting on insurers – but can MGA’s save the day?

The FCA’s multi-firm review into insurance claims handling is sending a clear message: all parties involved in the claims process, including MGAs with delegated claims authority, are under increased scrutiny. This isn’t just a regulatory exercise; it’s a wake-up call for insurers to be more robust in their oversight of the claims process—including the management of delegated authority agreements.

As an MGA with delegated claims handling authority, insurers will be looking to you more than ever to ensure that processes are watertight, efficient, and compliant. The question is, are you ready?

What will the FCA be focusing on?

The FCA’s review will not only focus on insurers but will also scrutinize the effectiveness of delegated claims handling. MGAs must be prepared to demonstrate that they are managing claims in line with both regulatory expectations and customer outcomes. Here’s what you can expect:

1. Fair treatment of customers: As the FCA zeroes in on how claims are managed, MGAs, on behalf of insurers, must ensure that policyholders are treated fairly and consistently.

Claims need to be resolved without unnecessary delays or complications.

2. Claims performance and speed: How quickly are claims being processed?

Your insurers will want to make sure that you are scrutinising the performance of TPA’s, ensuring claims are handled efficiently, especially where speed is a critical factor for customer outcomes.

3. Oversight by insurers: Insurers will now be under significant pressure to provide stronger oversight of MGAs and the delegated claims process. This means they’ll be asking for more frequent audits, clearer data, and evidence that MGAs are fully compliant with regulatory expectations. Insurers will want to see that robust governance frameworks are in place and actively managed.

4. Data accuracy and transparency: The FCA expects that accurate claims data will be captured and reported, allowing insurers to have full visibility over the claims process.

MGAs must have systems in place to provide clear, up-to-date reports that meet both insurer and FCA requirements.

Stronger oversight is coming – are you prepared?

As insurers face increased pressure from the FCA to provide stronger governance over MGAs, they will be turning to you to deliver results.

Your firm’s ability to manage claims processes effectively, while maintaining transparency and compliance, will be key to retaining insurers’ confidence.

To meet these expectations, MGAs must be proactive. You need to demonstrate that not only are you managing claims efficiently, but you’re also providing insurers with the reassurance they need regarding oversight and governance.

How GreenKite can help MGAs thrive in a heightened regulatory environment

At GreenKite, we understand the unique challenges MGAs face when managing delegated claims authority, and we’re here to help. We offer tailored solutions to ensure that your claims processes meet FCA standards while helping you demonstrate strong governance to your insurer partners.

Our team can assist you by:

• Auditing and optimizing your delegated claims handling processes
• Strengthening your governance frameworks to satisfy both insurers and regulators
• Ensuring you are capturing and reporting claims data accurately, giving insurers full visibility
• Helping you maintain a seamless customer experience while staying compliant

With insurers seeking more robust oversight of delegated authority, the pressure is on MGAs to deliver excellence in claims handling. Don’t wait until it’s too late—get ahead of the FCA review and ensure you’re prepared to meet the growing demands from your insurer partners.

GreenKite: Empowering MGAs to excel in claims handling and meet heightened regulatory and insurer expectations.