What is the primary role of the Financial Conduct Authority (FCA) in insurance?

The primary role of the Financial Conduct Authority (FCA) in insurance is to regulate the conduct of financial firms. This includes ensuring that firms operate in a manner that is fair to consumers, maintains market integrity, and promotes competition in the financial services industry. The FCA establishes rules and standards that insurance companies must adhere to, thus safeguarding consumers while ensuring that the markets function effectively.

The emphasis on regulating conduct means the FCA has the authority to supervise and enforce compliance with legislation, protecting consumers' rights and enhancing their trust in financial products. This regulatory framework is crucial for maintaining the stability and integrity of the insurance market, ultimately benefiting both consumers and firms.

The other options do not accurately reflect the FCA's role in insurance. Increasing insurance premiums is related to market forces and specific company policies, while providing insurance products directly to consumers is not a function of the FCA; rather, it is the responsibility of insurance firms. Eliminating all forms of insurance fraud is an important goal but is not the sole or primary function of the FCA, which focuses on regulation and oversight rather than direct action against fraud.