- Newslink Global Insurance Trends-The Week
- UK insurance trade associations respond to latest Brexit White Paper
- Munich Re says first half catastrophe losses lowest since 2005 estimated at around $33bn
- Lloyd’s launches a new digital distribution platform– Lloyd’s Bridge–designed to quickly, easily and efficiently connect insurance businesses and entrepreneurs with Lloyd’s underwriters
- FICO and Ovum assess company views on level of cyber security across market sectors
- AXA XL is the new group branding
- PRA publishes further Solvency II Consultation Paper, Policy Statements and Supervisory Updates expired
- Accenture to serve as the lead framework architect for The Institutes RiskBlock Alliance-a blockchain consortium for the risk management and insurance industry expired
- Next Insurance InsurTech raises $83m in series B round of funding expired
- Shift Technology to develop health insurance counter fraud database for H I Counter Fraud Group(HICFG) expired
- SSP's Keychoice partners with DAS UK Group to provide its broking community with access to two new commercial propositions for businesses through its e-trading platform expired
- LIIBA creates new working group, the Broker Delegated Authority Working Group(BDAWG) focussing the work of the London Market Target Operating Model and its impact on binders and line slips expired
6th December 2017
FCA updates on Sandbox development
The Financial Conduct Authority(FCA)has unveiled the firms that were successful in their applications to begin testing in the third cohort of the sandbox.
The sandbox allows firms to test innovative products, services or business models in a live market environment, while ensuring that appropriate protections are in place. It is part of Innovate, an initiative kicked off in 2014 to promote competition in the interest of consumers. The sandbox was a first for regulators worldwide, underlining the FCA’s commitment to innovation in financial services.
Christopher Woolard, executive director of strategy and competition at the FCA, comments “Since we first opened the sandbox, it has supported almost 70 firms in testing innovative new products and services. It is particularly encouraging that we are now seeing more applicants from outside London and a broader range of firms testing in the sandbox. As we open the application window for our next sandbox cohort, we continue to encourage applications from firms of all sizes and from a wide range of sectors, including sectors we haven’t seen heavily represented in the sandbox to date.”
The FCA received 61 submissions for the third phase of the regulatory sandbox. 18 applications met the sandbox eligibility criteria and were accepted to develop towards testing.
We continue to see successful sandbox applications from a diverse range of sectors, locations and firm size. Accepted propositions cover a range of areas including blockchain based payment services, RegTech propositions, general insurance, AML controls, and biometric digital ID and Know Your Customer (KYC) verification.
In the sandbox’s first phase, a majority of the firms were London-based with only a few from other parts of the UK. As the FCA continues to increase its regional engagement in emerging FinTech hubs, encouragingly, the proportion of regional firms has increased in each subsequent cohort. Over 40% of firms invited to test in cohort 3 are based outside London, compared to 35% in cohort 2 and 25% in cohort 1.
The current cohort consists of the firms listed below. Tests will be conducted on a short-term and small-scale basis and the FCA has worked with the sandbox firms to agree testing parameters, building in consumer safeguards.
List of Cohort 3 firms in the insurance sector are:
Uses smart-contracts on a blockchain to provide fully-automated decentralised flight insurance.
Sherpa Management Services
Insurance solution that offers members one account to set-up and manage multiple insurance risks. Sherpa offer dynamic products which provide the ability to increase and decrease the sum assured as needs change.
Usage-based contents insurance product with innovative risk scoring method.
the FCA are now accepting applications from firms to be part of our fourth sandbox phase. Firms have until 31th January 2018 to submit their applications. The eligibility criteria, application form and instructions on how to apply are available on the FCA website. The FCA would expect all accepted firms to be ready to begin testing from June 2018.
The FCA encourages applications from firms of all sizes. As seen by the firms accepted into the existing three cohorts, the sandbox is available to large firms, start-ups and everything in between.
FCA Trends(149 articles)