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Insurance
Insurance authorisation
Authorisation for insurers, managing general agents and insurance intermediaries — conduct, prudential and governance frameworks, in the UK, across Europe and in comparable regimes elsewhere.
We authorise insurers, intermediaries and managing general agents, building the conduct and prudential frameworks insurance regulation requires and the governance that has to sit behind them.
Insurance splits sharply into two very different applications. An intermediary or MGA is authorised by the FCA alone, and the application turns almost entirely on conduct: distribution, product governance, fair value and oversight of the chain. A new insurer is dual-regulated by the PRA and the FCA, and the process is longer, more capital-intensive and generally runs through a mobilisation stage. Firms sometimes arrive assuming one and needing the other, usually because of how risk sits in the structure rather than what the product is called.
Who we do this for
- Managing general agents operating under delegated authority
- Insurance brokers and distribution businesses
- Insurtech and embedded insurance propositions
- Protection, health and specialist personal lines firms
- New insurers and captives seeking dual-regulated permission
- Firms in run-off and portfolio transfer situations
Intermediary, MGA or insurer
The distinction that matters is where underwriting risk sits. An MGA writes business under delegated authority from a carrier and is authorised by the FCA as an intermediary — the carrier holds the risk and the capital. Where the firm itself carries insurance risk, dual regulation by the PRA and FCA follows, along with substantially higher capital and a longer process. Embedded and insurtech models often blur this, particularly where a risk-sharing arrangement or a captive is involved, so the analysis should come before the funding round rather than after.
Product governance and fair value
Product governance obligations require manufacturers to define a target market, test that the product delivers value, and review it on a cycle. Distributors have their own obligations, and remuneration in the distribution chain is squarely in scope — a well-designed product can still fail a fair value assessment because commission has stacked across too many intermediaries. New applicants are expected to arrive with a completed fair value assessment for the initial products, not a promise to conduct one.
The Consumer Duty across the distribution chain
The Duty requires firms to evidence good outcomes, which in insurance means understanding what happens after the sale: claims acceptance rates, complaint themes, and whether the product performs as the target market was told it would. For MGAs and brokers, that requires information flow from carriers and distributors that has to be contractually secured before launch.
Prudential and governance for insurers
New insurers work through the UK's reformed prudential framework, generally via a mobilisation route that allows authorisation with restrictions while the firm builds out. That means a credible capital plan, an actuarial function, reinsurance arrangements evidenced rather than intended, and named individuals holding the senior manager functions with real capacity. Timelines here are measured in quarters rather than months.
Where we authorise
United Kingdom
Insurers regulated by the PRA and FCA; intermediaries and MGAs by the FCA.
European Union
Insurers and intermediaries under the EU framework.
Rest of world
Insurance and intermediary regimes in major centres.
How the process runs
Structure and risk analysis
Where underwriting risk actually sits, whether the firm needs FCA-only or dual-regulated permission, and whether an appointed representative arrangement is a viable first step.
Building the pack
Regulatory business plan, conduct and product-governance frameworks, fair value assessments, capital or solvency position, outsourcing and delegated-authority controls.
Submission and case officer
Intermediary applications run to the six-month statutory deadline for a complete application. Dual-regulated insurer applications take considerably longer and usually involve a mobilisation stage.
Getting operational
Delegated authority agreements executed, outcomes and claims data flowing, product review cycle scheduled, and reporting obligations diarised.
Common questions
Do MGAs need FCA authorisation?
Yes. An MGA underwrites under delegated authority from a carrier but is itself carrying on insurance distribution, which requires FCA authorisation as an intermediary — unless it operates as an appointed representative of an authorised principal.
How long does insurance intermediary authorisation take?
Six months is the statutory deadline for a complete application, twelve for an incomplete one. Straightforward intermediary applications often complete faster; MGA applications with complex delegated authority arrangements usually do not.
What is a fair value assessment and who has to do one?
Manufacturers must assess whether a product provides fair value to the target market, taking account of all remuneration in the distribution chain. Distributors have related obligations. New applicants are expected to have completed the assessment for their initial products before authorisation, not to describe how they would do one.
Can I start as an appointed representative?
For intermediary and MGA models, frequently yes, and it is a faster route to market. The principal holds the permission and now applies substantially more oversight than it once would have, following the FCA's tightening of the AR regime.
What does authorising a new insurer involve?
Dual regulation by the PRA and FCA, a credible capital plan under the UK's reformed prudential framework, an actuarial function, evidenced reinsurance and a full governance structure. Most new insurers use a mobilisation route, and the process is measured in quarters.
More on how we work, fees and timelines is on the FAQ page, and the regimes we cover are set out under jurisdictions.
Why firms use Pitchsd
Insurance authorisation turns on evidence about how a distribution chain will actually behave, not on how it is described. We have built product-governance and fair-value frameworks that had to survive contact with real claims data and real complaint volumes, and we write applications accordingly.
We also build the technology the business runs on, so the platform and the permission arrive together rather than being someone else's problem. And we can put senior people into the business — a fractional MLRO, non-executive directors, a CFO — through our network. Get in touch to talk through where your application stands.