NAIC, PRA, and FCA Hold Fourth Annual Bilateral on Insurance Markets and Regulatory Priorities
On Sept. 3, the National Association of Insurance Commissioners (NAIC) met with representatives from the United Kingdom's Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) in London for their fourth annual bilateral meeting to discuss key issues related to their respective insurance markets.
The dialogue provided regulators from two of the world’s largest insurance markets the opportunity to discuss strategic priorities on issues of mutual interest, including the implementation of the Insurance Capital Standard (ICS); financial regulatory oversight; technological issues, including cybersecurity and insurers' use of artificial intelligence (AI); updates on natcat reporting and resilience; and market conduct reviews.
Financial Regulatory Oversight
The two sides discussed asset intensive reinsurance, including their respective work on the topic. Notably, the PRA provided an update on its work on funded reinsurance, including a recent public consultation. Both sides also discussed the trends they are seeing with alternative assets and private credit in the insurance sector and how they are addressing the shifts in the investment landscape. The PRA also discussed its proposal on developing a captive regime in the UK.
Technological Issues
The NAIC highlighted numbers and trends from its forthcoming 2026 cyber insurance report and discussed its experience implementing the Model Bulletin on the Use of Artificial Intelligence Systems by Insurers, as well as the development of the AI Risk Evaluation Supplement. The PRA and the FCA remain interested in how insurers are using AI and will be conducting their own study.
Natural Catastrophe Risk and Resilience
The NAIC shared updates on its work on grant mitigation programs, the development of a model law, and premium discount tables associated with fortification. The PRA noted its December 2025 Policy Statement 25/25 and provided an update on how financial firms must identify, govern, and manage climate-related financial risks.
Market Conduct
The NAIC outlined its future work on the market conduct review, while the FCA highlighted work from its first annual insurance Regulatory Priorities report (February 2026), including consumer education, among other topics.
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.