Building on the Government's recent Industrial Strategy, Chancellor Rachel Reeves has now unveiled a detailed plan for financial services as a priority area to drive UK growth.
The Government has been working on sector-specific policies to address barriers to investment in eight key sectors as part of plans to drive long-term sustainable and resilient economic growth across the UK as a whole.
Read the full Financial Services Growth and Competitiveness strategy here
Commenting on the strategy, Insurtech UK CEO Melissa Collett said: "Insurtech UK welcomes the concrete steps set out for regulators to streamline and speed up the authorisation process, and to provide greater regulatory support to fast-growing innovative financial firms through a new “Scale Up” unit.
"This was a fundamental ask in our policy Roadmap to strengthen the UK’s global leadership in insurance innovation, and builds on the foundations of the Insurer Start-up Unit following our member roundtable with the PRA and FCA on this issue earlier this year.
"Wider measures including targeted innovation funding and championing AI in financial services are all positive components in the UK’s domestic operating environment for insurtechs.
"Internationally, the Government’s commitment to ensuring strong relationships with the USA and the EU will also support the global ambitions of UK insurtechs, given the opportunities in these destinations for our members to export and expand.
"From an insurance perspective, it is promising that this package also includes next steps to establishing a UK captives regime. This is a move Insurtech UK called for in our recent consultation response, given captives may be well-placed to support innovation by better understanding, covering and pricing new or emerging risks related to AI or climate change."