Category: insights

MGAA Supplier Showcase: Regulatory, Legal & Compliance: best practices.

Regulatory change is a constant feature of insurance, home emergency and legal expenses markets.

For MGAs and coverholders operating in legal expenses and liability, the challenge is not simply keeping up with new rules. It is showing that those rules are understood, built into everyday processes and reflected in the way we deliver good outcomes for customers.

The most effective MGAs are therefore moving away from treating compliance as a periodic document-led compliance operating model. Instead, they are making it an integral part of how the business operates day to day.

Putting customers first

Customer clarity should be the bedrock of compliance.

The Consumer Duty has shifted the focus onto the delivery of good outcomes across products and services, price and value, consumer understanding and consumer support.

However, legal expenses products can be complex and difficult for customers to understand what’s covered and what’s not. Cover may depend on exclusions or conditions that only become evident when legal support is needed.

Liability and indemnity policies can raise similar questions around excesses and the difference between legal defence costs and compensation payments.

Good compliance practice should start with a simple question: does the product work in the way the customer expects? If they will get a nasty surprise in the event of an insured event or claim, then the answer is no.

MGAs should therefore look closely at whether the policy wording is clear, whether distributors are explaining the cover accurately and whether claims decisions are consistent with both the wording and the intended purpose of the product.

Keep a close eye on partners

An MGAs compliance framework is only as strong as the wider network of businesses supporting it.

Implementation should go beyond contractual assurances. Capacity providers need confidence that underwriting, claims handling, complaints, financial crime controls and data protection are all being managed properly.

This means agreeing responsibilities clearly from the outset, setting practical and measurable service standards.

Useful measures might include claims turnaround times, complaint levels, repudiation rates, policy cancellations, breaches of underwriting authority and overdue bordereaux.

Data driven decisions

Good-quality data is essential to support regulatory reporting, but it also helps MGAs identify unusual underwriting patterns, claims leakage and possible conduct concerns.

Claims and complaints data can be particularly revealing.

Reviewing the complaints alongside claims outcomes may show that the same issue is appearing repeatedly with a particular policy.  A rise in disputes around one exclusion may suggest that the issue lies in the wording or sales journey rather than with customers failing to understand the policy.

Can AI deliver compliance fit for the future?

The proliferation of AI appears to be unstoppable in all areas of the financial and legal sector. Digital solutions will undoubtedly play a bigger role in helping businesses comply with evolving regulation.

Artificial intelligence and automation are increasingly being used to review documents, triage claims, identify unusual patterns and support underwriting decisions.

However, used without proper oversight, they can create new risks around accuracy, personal data, transparency and poor outcomes. Used well, these tools can improve speed and consistency.

But can AI truly put customers first? Can AI really deliver consumer understanding? Can it genuinely support vulnerable customers?

Technology can support professional judgement, but it should not replace human judgement. An MGA should still be able to explain how an underwriting or claims decision was reached – in person.

Best in class compliance

Attracting the right people into compliance roles is also becoming increasingly important.

As regulation, technology and distribution models grow more complex, MGAs need compliance professionals who can do more than interpret rules. They must be able to understand the commercial realities of the business, communicate clearly with colleagues and help turn regulatory expectations into practical action.

Offering compliance teams a visible role in strategy, product development and innovation can help attract high-calibre candidates and position the function as a business partner, rather than a final checkpoint.

Final thoughts on compliance best practice

A strong compliance framework is not measured by the length of a policy manual. It is measured by less claims rejections, less complaints and more loyal customers.

To deliver this, compliance teams need Continuing Professional Development.

They need to understand where – and what risks are emerging and how they impact customer segments. They should also be aware of how trends like tech-led compliance considerations and AI-based underwriting decisions are framing our industry.

CPD should therefore reflect real situations and compliance reviews should test what happens in practice – rather than simply checking that the right documents exist. Ongoing training should also look beyond insurance-specific regulations to consider how wider legal and commercial developments will impact the compliance function.

In a market built on trust, good compliance has to be positioned as more than a regulatory requirement. It must be a company mantra which focuses on good outcomes for customers.

By Chris Breakwell, Chief Risk Officer August 26

Q&A with Billi Cobley and MGAA CEO Michael Keating

PRESS RELEASE

Liability and Legal Expenses insurer Irwell is delighted to announce that it has received regulatory approval for Professional Indemnity Insurance, Personal Home Emergency and Landlord Home Emergency,and has also launched Family Legal Protection.

This is a significant milestone for Irwell and represents the culmination of developing strong partnerships and an unwavering commitment to new product development to support the evolving and complex needs of coverholders.

“The approval is a compelling endorsement of the quality of our products, our governance framework and the professionalism with which we operate,” said Giles Reading, CEO of Irwell.

“It also marks a major step in delivering our growth strategy by expanding our product offering and maintaining high client retention rates. I am very proud that the hard work and commitment of all the teams involved to get these new products over the line has been recognised,” Reading added.

In line with Irwell’s commitment to product innovation, the two Home Emergency products improve the customer experience by providing optional access to a qualified engineer through an online application. The engineer will assess the problem via a video call and attempt to diagnose and fix the customer’s emergency without the need for an onsite visit. Where a remote fix is not possible, an engineer will attend the property.

Meanwhile the Family Legal Protection product gives customers access to online mental health support and a counselling helpline provided by Health Assured.

There is a misconception that businesses do not have to pay for a HSE inspection.

But if the Health and Safety Executive (HSE) visit your workplace and find that you are in material breach of health and safety law, you will have to pay for the time it takes to identify what is wrong and to help you put things right.

This is called a fee for intervention (FFI).

However, if the findings reveal that you haven’t broken the law, you won’t be charged for the inspection.

What is a material breach?

A material breach is an issue which an inspector considers serious enough that they need to formally write to the business requiring action to be taken.

If the inspector gives you a notification of contravention (NoC) after their visit, you’ll have to pay a fee.

Where an inspector simply gives you advice, either verbal or written, you won’t have to pay for this advice

Who FFI applies to

FFI applies to dutyholders where HSE is the enforcing authority including employers, self-employed who put others at risk, public and limited companies, general, limited and limited liability partnerships and public bodies.

How much does an FFI cost?

The HSE Fee for Intervention (FFI) hourly rate is currently £183. The total cost to a business varies significantly based on the nature, duration and complexity of the investigation and the size of the company.

Your fee may include time:

• at your business or workplace
• preparing reports
• getting specialist advice
• talking to you after the visit
• talking to your workers

The fee can vary depending on:

• the duration of the original visit
• the time spent helping you put things right
• the time it took to investigate your case
• any time the HSE spends taking action against you

The average cost is around £700 but can be up to £1,500 for cases involving enforcement notices. 

Prevention is better than cure

Our liability policies include a health and safety review tailored to the unique risks of each business we insure.

SafeCheck which only takes around an hour, reviews what you are doing well and what needs improving – so that your business can achieve HSE compliance.

Minimise business risk in 4 simple steps

1. Documentation review to check that health & safety policies and procedures are up to date
2. Sector-specific H&S compliance questions answered
3. On-site or online tour of the workplace and activities to identify H&S concerns – and what is being done well
4. A useful report including practical guidance on how to minimise business risk and achieve H&S compliance

Leading legal expenses and liability insurer Irwell Insurance is delighted to announce that AM Best has upgraded its Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “bbb” (Good).

The Financial Strength Rating (FSR) of B++ (Good) was also affirmed.

The upgrading of the Long-Term ICR reflects improvements to Irwell’s balance sheet strength, notably through strengthened risk-adjusted capitalisation, underpinned by good earnings retention over recent years.

“We are delighted that Irwell’s strong balance sheet and positive operating performance has been recognised by AM Best,” said Giles Reading, CEO of Irwell.

“Our impressive results stem from high client retention rates and an unwavering commitment to developing innovative, market-leading products that align with the evolving liability and legal expenses markets.

“This is a positive start to 2026 for Irwell and all our partners. It provides us with a platform to grow our product portfolio to satisfy evolving commercial risks and the complex needs of our coverholders,” Reading added.

Manchester based Irwell has a track record of positive operating performance, reporting a five-year (FY21-25) weighted average return on equity ratio of 14%. Underwriting profits are the main driver of earnings, with the company reporting a five-year weighted average combined ratio of 84%.

AM Best expects Irwell’s portfolio to grow over the medium term, supported by the expansion of its business through new and existing product lines.

For the Best’s Credit Rating, access www.ambest.com

HSE inspections will focus as much on health as on safety.

UK employers have been under the watchful eye of the Health & Safety Executive (HSE) since 1974.  Inspections have historically scrutinized company policies and procedures for physical hazards, employee safety, regulatory compliance and workplace conditions.

But the new 10-year HSE strategy to reduce workplace ill health will prioritise mental wellbeing, as well as physical safety.

It will focus on six key areas: manual handling; display screen equipment, COSHH, noise, mental health and stress.

Those employers that don’t focus on addressing stress, anxiety and depression in the workplace as much as musculoskeletal or slips and trips hazards could find themselves facing substantial fines and even potential shutdowns.

Sickening statistics

According to the latest HSE data published in November, 1.9 million workers were suffering work-related ill-health in 2024/25. This reflects a concerning 200,000 year-on-year increase.

Work-related stress, anxiety and depression now account for more than half of all lost working days in the UK (22.1 million working days). With nearly a million workers (964,000) affected last year, the UK is facing a serious mental health crisis.

This trajectory has led to an increase in health-related prosecutions by the HSE. Last year, 246 criminal prosecutions were completed with total fines of £33m, half of which were related to workplace health.

Health risk management

All our liability products include a health and safety review which helps to mitigate the unique risks of each business – and protect their most valuable asset – their people.

SafeCheck only takes around an hour to find out what is being done well – and where there is room for improvement to achieve HSE compliance.

Now that the HSE will be proactively prioritising workplace health as part of routine inspections, isn’t it time you reviewed your health risk management policies and procedures?

When it comes to protecting people, prevention is always better than cure.

Stats source: Prepare for more workplace health inspections, employers told

The season of goodwill can be a lively and lucrative time for the hospitality sector.

Christmas parties, Mad Friday and friends and family get-togethers can be a lifeline for many hotels, restaurants and bars. In fact, takings in December can be equal to three months of trading.

But faced with rising running costs, the cost-of-living crisis forcing many to stay indoors and staff shortages, making Christmas merry and bright is a challenge for the 173,515 hospitality businesses in the UK. [1]

99.6% of hospitality businesses are classed as SMEs which makes the pressure to serve up delicious food and wine, pour perfect pints and create cocktails that make Insta-worthy memories even more Christmas-critical!

Festive cheers and fears

The hospitality sector has a moral and legal obligation to prioritise customer and employee safety and wellbeing. While there are health and safety risks all year round, some become more prominent during the busy festive season.

But 35% of hospitality workers regularly break health and safety rules. [2]The main reason cited was to cut corners to speed up work and just over a quarter said it was because they had been unaware the rule existed.

HSE workplace accident data has highlighted a concerning rise in injuries in the hospitality sector. The report highlights over 4,000 cases of workplace injury in 2023/24 – a rise of more than 13% in two years. [3]

All businesses want to see increased footfall at Christmas, but this cannot compromise customer and staff safety.

Here’s how the hospitality sector can manage and mitigate their liabilities through Christmas – into a prosperous and Happy New Year 2026.

Sparkle and shine

Of course, Christmas is a time to sparkle and dazzle with lights, candles and decorations but businesses should ensure that cables and connections are fit for purpose and comply with British Standard regulations. Make sure Christmas trees are secure and aren’t blocking fire escapes or access to fire extinguishers.

Read more detailed HSE guidance about festive fire safety when decking the halls of hotels, bars and restaurants.

Keep customers in good spirits

Dealing with the general public goes hand-in-hand with a career in the hospitality sector. But too much Christmas spirit can often dampen the ‘cheer’ of some members of the public. Staff should be given training about how to handle physical and verbal abuse that often accompanies drunk, disorderly behaviour. If a venue becomes over busy, people could find it difficult to evacuate in the event of a fire so ensure that measures are in place to avoid overcrowding and never go over capacity limits.

Keep staff safe

From slips, trips, knife injuries, burns, dermatitis and musculoskeletal problems to dealing with the general public, working in hospitality can be a risky business. Christmas can be more chaotic than ever with extra footfall, deliveries and temporary staff so it’s imperative that they are fully trained in health and safety procedures and policies – just like full time, permanent staff.

More Christmas deliveries mean more manoeuvring and lifting heavy boxes of food and drink so make sure manual handling legislation is followed.

A less obvious risk is when someone is struggling with their mental health. Additional workload, zero hours contracts and longer hours are synonymous with the hospitality sector at Christmas, but it can take its toll.

Be mindful that Christmas can be a lonely or difficult time for some resulting in work-related stress, depression or anxiety. Employees have a duty of care to take care of employee mental wellbeing as well as protecting their physical safety.

Spread comfort, safety and joy this Christmas!

Public or employee liability claims are always a concern for the hospitality sector. From an employee claiming unfair dismissal or harassment to a kitchen injury or customers slipping on spilt drinks, claims are a fact of life for hoteliers, restauranteurs, and pub landlords.

But having H&S procedures in place – and employee and public liability insurance, hospitality owners have one less thing to worry about.

Staff aren’t just for Christmas so take care of them and they will be loyal and keep your diners and drinkers happy throughout the year!

Hospitality HSE compliance

Some things are meant to be together – like mulled wine and mince pies, turkey and cranberry, liability insurance and H&S reviews.

That’s why Irwell’s liability insurance includes SafeCheck, a health and safety assessment tailored to the unique risks of each business. We believe you shouldn’t have one without the other.

Read our guide to keeping food and drink businesses better protected.

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[1] Hospitality: statistics and policy – House of Commons Library

[2] Third of hospitality workers regularly break health and safety rules –

[3] HSE data reveals ‘concerning rise’ in hospitality injuries

Does greater stability for tenants mean greater risks for landlords?

Now the Bill has received Royal Assent, the priority is clear: to deliver greater security and stability for tenants.

The new legislation encourages long-term tenancies – something most landlords support. But stability must work both ways. However, for many landlords – the changes will inevitably alter the balance of risk.

Landlords will need to rely on robust tenancy management, clear evidence trails and lawful grounds for possession in the event of a dispute more than ever before.

Overview of 10 changes landlord clients need to know

1. All tenancies to become periodic

Assured Shorthold Tenancies (ASTs) will automatically convert into assured periodic tenancies (rolling contracts). That means tenancies will continue indefinitely until ended by a valid notice – either from the tenant or from the landlord for specific legal reasons.

2. New Tenancy Terms

Landlords will need to provide tenants with a written statement of tenancy terms at the start of every new tenancy. Existing tenants won’t need new agreements, but they must be given a Government-issued summary of the changes within one month of the legislation coming into force.

Landlords can take the deposit in advance of a tenancy agreement but cannot insist on advance rent beyond the first month.

3. Higher property standards

All rented homes must now meet the Decent Homes Standard meaning they must be safe, well-maintained and free from harmful hazards.

Compliance with Awaab’s Law, requires landlords to act promptly on issues like damp and mould which must be inspected within 10 working days, and made safe within five, after the inspection. Gas leaks, broken boilers – or if damp or mould are affecting a tenant’s health will need to be looked at within 24 hours. If landlords can’t meet those deadlines, they must offer alternative suitable accommodation.

4. Section 21 “no-fault” evictions abolished

Landlords will only be able to regain possession using Section 8 grounds which includes selling the property or moving in themselves – but these cannot be used within the first 12 months of a tenancy. Tenants can leave at any time with two months’ notice.

5. Rent Increases only permitted once per year

Rent increases must be issued with at least two months’ notice via a Section 13 notice and tenants can challenge increases through the First Tier Tribunal.

6. An end to rent bidding wars

Landlords and agents must now advertise a set, clear asking rent. Prospective tenants cannot be encouraged to offer above that amount and offers over the advertised rent cannot be accepted.

7. Anti-discrimination measures

Landlords will no longer be allowed to refuse tenants simply because they have children or are receiving benefits. However, they can still conduct affordability checks and refuse applications based on income viability or property suitability.

8. Greater rights to keep pets

Landlords cannot unreasonably refuse a tenant’s request to keep a pet – and they must respond to requests within 28 days. Only superior landlords (such as a freeholder or building owner) can prohibit pets or if it can be proved that the request is unreasonable.

9. Mandatory landlord registrations

Every landlord will need to register on the new Private Rented Sector Database and join the Landlord Ombudsman who will handle complaints and disputes.

10. Tougher local authority enforcement

Local councils will have extended powers to enforce the new law and can issue fines which start at £7,000 for a first offence, rising to £40,000 for repeat breaches.

Tenants may also apply for Rent Repayment Orders of up to 24 months’ rent for serious offences.

Mitigating risks for private landlords

As the legislative and financial implications of being a landlord become more acute, broader market pressures are also reshaping the rental landscape. Rising mortgage rates and maintenance expenses mean margins have tightened. A prolonged period of missed rent, even just a few months, can place significant strain on rental viability.

That’s why rent guarantee protection has never been more important. It provides a critical safety net, ensuring landlords can continue meeting their financial commitments even if rent stops being paid.

Beyond covering the income gap, our legal expenses insurance will become increasingly valuable as updated possession processes come into play.

On International Day for the Eradication of Poverty, Irwell Insurance is delighted to announce our 12-month commitment to supporting Mustard Tree – to give back to our local Manchester community.

Manchester has one of the highest rates of homelessness, with 1 in 74 people experiencing homelessness and rates rising by 34% per year in Manchester alone.

Mustard Tree aims to tackle the root causes of homelessness, specifically unemployment, addiction and long-term sickness and offers support for people from all walks of life across their three sites including the main community hub based in Ancoats.

Mustard Tree gives a hand up, not just a handout.

Through their ‘Freedom Project’ they provide training courses and classes to give people life skills and work experience to help them escape poverty. Their hubs provide a welcoming and safe environment, with an emphasis on creating positivity and ambition.

Featuring a community shop, a kitchen and coffee shop offering dishes made by trainees and food donated by local independent stores, Mustard Tree offers a thriving environment for those looking to gain and develop vital life and employment skills.

Everyone is welcome to drop by and sample the delicious breakfast and lunch menu or browse the shop for clothes and furniture. Supporting these services makes the world of difference – not only raising vital funds but also building confidence and employment skills to last a lifetime – from baristas and PAC testers to sales assistants and chefs.

Irwell Insurance is committed to a 12-month partnership by actively taking part in staff volunteer days as well as fundraising activities including the Manchester Marathon, Tough Mudder and even abseiling!

“We are delighted to be supporting this wonderful, deserving and much-needed charity. The response from our staff to get involved in volunteering and fundraising has been inspiring.

We are looking forward to supporting Mustard Tree make a difference to people living in poverty in Manchester – everyone deserves to have the dignity and security of a home and employment.”

Giles Reading, Chief Executive Officer

“Delighted is an understatement that Irwell has committed to supporting Mustard Tree! Over the next 12 months, their financial donations and hands-on, practical support will help change people’s lives.”

Rachel Crank, Fundraising Officer

To find out more information about Mustard Tree and how they are helping to prevent poverty, visit their website  www.mustardtree.org.uk

If you wish to donate to Mustard Tree please do so via this link- https://www.justgiving.com/page/irwell?utm_medium=FR&utm_source=CL

Mustard Tree services at a glance

• Provide training courses to build life skills
• Freedom project – gaining work experience to help them find permanent employment
• Welcome people from all walks of life – those starting off their journey with Mustard Tree (in urgent need) to those who have escaped poverty but need a little extra support (furniture for their new home for example)
• Classes and clubs – writing a CV, English lessons and art workshops
• 40% of items are given for free and vouchers can be used in the food bank

What ‘rejection’ means for employers under The Employment Rights Bill

MPs in the House of Commons decisively rejected most of the amendments proposed by the House of Lords to the Employment Rights Bill. In doing so, they reaffirmed the Government’s intention to preserve the core protections originally proposed – rather than dilute them.

This landmark parliamentary moment matters considerably for employers.

The rejection is more than a procedural victory for Government; it gives clearer shape to the legislative direction and offers a signal to organisations to act now.

Preserving ‘day-one’ unfair dismissal protections

Perhaps the most consequential amendment the Lords sought was to insert a six-month qualifying period before unfair dismissal rights could be claimed – essentially rolling back the proposed “day-one” protection.

MPs refused that move. This is a signal that the Government intends to make unfair dismissal rights effective from the start of employment (subject to limited carve-outs) as originally promised.

For employers, that means dismissal risk increases earlier in the employment relationship. The days when ‘outsourcing risk’ to probationary periods with impunity are effectively over.

Robust procedures, immediate documentation and fair processes will be more critical than ever from day one.

Firming up worker protections

Other amendments struck down include proposals to narrow the new obligations around zero- or low-hours contracts and to weaken whistleblower protections or the right to accompany at disciplinary hearings. The rejection also cements in principle the extension of rules voiding NDAs in harassment and discrimination cases.

This suggests Parliament is pushing for relatively strong protections – not just minimal tweaks.

Reduced uncertainty

By rejecting numerous Lords’ changes, MPs reduce some of the legislative ambiguity. Employers can now plan more confidently around the bill’s core contours, rather than contending with extreme swings in possible outcomes.

The Commons’ action sends a strong political signal: the Government is standing by its manifesto agenda for worker rights, and it is unwilling to make radical compromises.

This further cements the commitment to embedding a ‘pro-worker’ framework.

Key implications for employers

The rejection of amendments does not just reconfirm intent – it changes how employers should prepare.

1. Reassess probationary periods and dismissal policies

With day-one unfair dismissal protections likely to remain, employers must revisit the role and limits of probationary periods. Rather than relying on them as a safe ‘trial’ period, organisations will need to build in stronger procedural safeguards (notice, documentation, opportunities to address performance) from the outset. Dismissal decisions will be more exposed to challenge – even early on.

2. Audit contracts, zero-hours arrangements and request rights

Any workforce with zero- or low-hours contracts will be under closer scrutiny. The employer obligation to offer a guaranteed hours contract may not be ‘on request only’ so employers should assess whether their current contract templates and policies comply with potential new standards. The risks of under-structuring casual, agency or variable-hour work will increase.

3. Strengthen grievance, disciplinary, whistleblowing and NDA policies

Given that protections around accompaniment, whistleblowing and NDA restrictions are likely to be more robust, employers must revisit those policies now. Guidance, training and clarity will be needed to avoid inadvertent breaches. Employers should build ‘right to speak out’ cultures that safely accommodate internal reporting and ensure their NDA structures do not contravene the new prohibitions.

4. Prepare for more tribunals and litigation risk

Stronger rights for employees increase the risk of employment challenges. Employers should expect more claims, and should prepare for and forecast the financial, procedural and reputational impact.

Pre-emptive investment in documentation, early resolution strategies, mediation and insurance or alternative dispute resolution procedures will be essential.

5. Manage change, culture and risk

With many of the details yet to be fleshed out in secondary legislation, employers must manage the transition carefully. Planning for change, flexible adaptation and internal communications will be key. Organisations that adopt an employee-centred culture may convert legal compliance into a competitive advantage in talent attraction, retention and reputation.

6. The growing importance of legal expenses insurance

With dismissal rights extending from day one and stronger worker protections across contracts, NDAs and whistleblowing, the likelihood of disputes progressing to tribunal is set to rise.

Even well-intentioned employers may find themselves defending claims that are time-consuming and costly. Legal expenses insurance will therefore become an increasingly valuable safeguard, helping businesses cover the costs of defending employment claims and giving them access to expert legal advice from the outset.

For many organisations, particularly SMEs with limited in-house HR or legal resources, such protection could prove critical in navigating this new risk landscape.

A turning point for employers

The Commons’ rejection of the Lords’ amendments marks a pivotal turning point in the unfolding landscape of UK employment law.

It signals that the legislative wind is blowing toward tougher protections, not retrenchment. For employers, the window for reactive adjustment is narrowing – those that wait until the last moment will risk being overwhelmed and exposed.

Yet the challenge also presents opportunity.

Organisations that seize this moment to embed procedural rigour, fairness from day one and a culture of respectful transparency will be better placed not just to comply – but to thrive in a world of heightened worker expectations and tighter employment legislation.