Why does this matter?
UK regulators have revised their approach to data quality. It's no longer just an IT issue. It's a regulatory risk that boards need to own. Strong data governance means you can show control and confidence when regulators ask questions. Weak governance? This leads to tough conversations and potentially results in enforcement action. The days of hoping legacy systems will hold up are behind us. If you've been putting off your data transformation, now's the time to act.
FCA Consumer Duty: Your Data Is Under Scrutiny
The Financial Conduct Authority has made its position clear. Insurers trying to prove Consumer Duty compliance with re-labelled legacy reports are falling short. The regulator keeps finding firms using incomplete management information that wasn't designed to provide fair value or vulnerable customer protections. The reality? If your board can't trust the data, you can't reliably identify customer harm. And you certainly can't convince supervisors you're in control.
PRA 2025 Priorities: Governance Starts with Good Data
The Prudential Regulation Authority's 2025 supervision priorities reinforce this message. In its Dear CEO letter, the PRA emphasises that robust risk management and internal controls depend on "accurate information." This isn't abstract guidance. It underpins every critical priority:
Operational resilience and impact tolerance monitoring
Cybersecurity and third-party risk management
Liquidity stress testing and capital adequacy
Solvency II reform implementation
Each one requires accurate, timely data from underwriting, claims, finance, and technology platforms. Without it, regulatory compliance becomes guesswork.
The Cost of Fragmented Insurance Data Management
Most insurers still wrestle with legacy systems, manual spreadsheets, and inconsistent definitions. The result? You can't trace how a figure in your board pack was calculated, or whether it's reliable. This data governance gap creates real regulatory exposure:
Misjudging product value for customers
Under-estimating emerging risks
Missing operational vulnerabilities
Failing regulatory reporting requirements
Building Insurance Data Quality That Regulators Trust
Tactical fixes won't cut it. Firms need integrated data governance frameworks with:
Clear data ownership across critical datasets
Standardised definitions spanning all functions
Automated quality controls catch errors before reporting
Full data lineage from source systems to board packs
Purpose-built MI designed to answer regulatory questions, not retrofitted operational reports
Accelerating Your Data Transformation Journey
Partnering with data specialists who understand both technology and UK regulatory expectations can speed up progress considerably. At Keyrus, we combine data engineering, AI, and automation expertise with deep FCA and PRA knowledge to help insurers:
Design regulatory data models aligned to Consumer Duty, Solvency II, and operational resilience requirements
Implement data lineage and quality controls across critical reporting
Rationalise legacy systems into coherent, trustworthy management information
The Bottom Line on Insurance Data Quality
Better data governance isn't just about compliance. It's about control. Firms that get this right gain a reliable view of their business, make faster decisions, target remediation effectively, and deliver better outcomes for customers. In 2025, regulators are watching your data. The question is: can you prove it's fit for purpose?
How Keyrus Delivers Regulatory-Ready Data Solutions
At Keyrus UK, we've worked with leading insurers and financial institutions to transform fragmented data landscapes into regulatory-grade information assets. Our approach combines technical depth with regulatory pragmatism. We understand both the FCA's Consumer Duty evidence requirements and the PRA's expectations around governance and controls because we've helped firms meet them.
Whether you're struggling with legacy system integration, need to establish end-to-end data lineage for Solvency II reporting, or require automated quality controls for Consumer Duty monitoring, our team brings proven data engineering capabilities and insurance sector expertise.
We don't just build dashboards. We create the trusted data foundations that let boards make confident decisions and demonstrate to regulators that you're genuinely in control. The result is faster remediation, reduced regulatory risk, and a more resilient business that can respond to supervisory challenges with evidence, not explanations.
Want to discuss how to strengthen your insurance data governance framework? Connect with our team at Keyrus UK to explore practical solutions for regulatory reporting, Consumer Duty monitoring, and operational resilience.
Sources:
Letter from Gareth Truran and Shoib Khan – Insurance Supervision: 2025 priorities | Bank of England
Financial crime oversight in corporate finance firms shows gaps, says FCA | FCA
Insurance multi-firm review of outcomes monitoring under the Consumer Duty | FCA