In 2019, the regulator for our industry switched from the Claims Management Regulator to the Financial Conduct Authority (FCA).
So, by law, every loss assessor in the UK must now be authorised to work by the FCA.
Being approved by the FCA means that a loss assessor or claims management company has been proven to meet the strict standards required to manage an insurance claim on behalf of a policyholder.
We covered this topic in more detail in our recent blog post, which will also signpost you to the FCA’s Financial Services Register. If you are a homeowner looking to appoint a loss assessor to take care of your property damage claim, always make sure they are listed here first.
How do new loss assessors gain FCA authorisation?
There are several steps to authorisation, and the process can be a long-winded for the uninitiated.
To be eligible for approval, a new loss assessor will need to meet the FCA’s Threshold Conditions, which stipulate, amongst other things, that they must:
- Have a head office located in the UK
- Have sufficient financial and non-financial resources to be able to carry out their work
- Be run by directors and senior managers with suitable skills and experience
- Prove they act in the best interests of consumers and in line with the workings of the UK’s financial system
As you can imagine, the application requires a substantial amount of documentation – and filling out all this paperwork will certainly eat into the precious time of any loss assessor who is just starting out.
There are also application costs to consider, plus the fees charged by any third parties you bring in to advise you – and you may or may not be aware that the FCA requires every registrant to carry a minimum amount of capital in order to be eligible for authorisation.
There’s another solution: join Your Claim
A simple way to bypass the need to register with the FCA without impacting your ability to work as a loss assessor is to join forces with a company that has already achieved the required approval; a firm like Your Claim.
As long as you are a suitable candidate, we can offer you the opportunity to trade under our brand, giving you all the required FCA licensing and protection you need to operate ethically and legally in our industry.
If you are interested in learning more about this opportunity and how this kind of arrangement works in practice, please contact Graham at Your Claim by emailing graham[at]your-claim.com or calling 01206 707999.