Why it’s important for insurance brokers to be authorised and regulated by the FCA

When you’re buying insurance, whether it’s GAP cover, car insurance, or specialist protection, you’re putting a lot of trust in the company you choose. That’s why it’s essential to ensure your insurance broker is authorised and regulated by the Financial Conduct Authority (FCA).

At ALA Insurance, we’re proud to be FCA authorised and regulated, and here’s why that matters for you.

Who is The FCA?

The Financial Conduct Authority (FCA) is the independent regulator of financial services in the UK. Established by Parliament in 2013, its purpose is to protect consumers, uphold the integrity of the financial system, and promote effective competition. The FCA sets standards for firms, monitors their conduct, and has the authority to investigate and take action where businesses fail to meet their obligations.

Trust and credibility

As the UK’s financial watchdog, The FCA carries out thorough checks on businesses to ensure a few things. These checks make sure that the business is financially sound, acts with integrity, and treats customers fairly. Consumer Duty is something that the FCA set out in 2023, however ALA Insurance has been working to this Consumer Duty standard since the company was first founded. It establishes strict standards for consumer protection across financial services and requires firms to prioritise the interests of their customers.

By choosing an FCA-regulated broker like ALA, you know you’re dealing with a legitimate, trustworthy business, not a middleman cutting corners.

Consumer protection

When you buy insurance through an FCA-regulated firm, you’re protected in ways you wouldn’t be otherwise:

• You have access to the Financial Ombudsman Service if you ever need to make a complaint.
• You may be covered by the Financial Services Compensation Scheme (FSCS) if your insurer or broker fails.

Plenty of insurance companies and other financial-based businesses do not provide insured and protected policies, or they are not regulated by the FCA. We would recommend that consumers fully read up on the benefits of insured policies, as it could save you disappointment if something were to go wrong with your policy. All insurance products at ALA are fully insured and protected, an extra safety net for you.

Clear and fair information

The FCA rules require brokers to:

• Be open and transparent about fees and charges.
• Make sure the cover they recommend suits your needs.
• Explain products clearly, so you know exactly what you’re buying.

We are committed to making sure you’re fully informed and confident in your decision, whether it's to buy or not to buy.

Protection against mis-selling

High-profile scandals like PPI show what can happen when customers are sold products they don’t need. The FCA’s regulations are designed to stop that happening, holding firms accountable if they put profits ahead of customers.

Why it matters for our customers

Insurance is about protecting yourself from the unexpected. Knowing your broker is FCA-authorised means you can focus on other things, without worrying about whether your insurance is safe.

At ALA Insurance, you’re covered on both fronts: your policy protects you against financial loss and our FCA regulation protects you against unfair treatment.

When it comes to insurance, fortune favours the insured.