In a decisive move to enhance its responsiveness and strategic focus, the Association of British Insurers (ABI) has initiated a fundamental restructuring of its governance framework, designed to decentralize authority and place its members at the forefront of policy development. This significant overhaul dismantles traditional committee structures in favor of a more agile and specialized model, reflecting a direct response to the industry’s call for a stronger, more direct voice in shaping the association’s priorities. The new architecture aims to accelerate decision-making processes and ensure that the ABI’s agenda is meticulously aligned with the evolving needs and expertise of its diverse membership. By shifting from a centralized approach to one that champions market-specific autonomy, the organization is positioning itself to navigate the complex regulatory and economic landscapes of the insurance and long-term savings sectors with greater precision and effectiveness, particularly in critical areas like pensions and investment. This strategic pivot is not merely an administrative adjustment but a clear declaration of intent to foster a more dynamic, member-driven organization.
A New Model for Member-Led Policy
Empowering Expertise Through Autonomy
The centerpiece of the ABI’s reform is the transformation of its main policy committees into empowered, autonomous “product boards” dedicated to general insurance, long-term savings, and health and protection. This structural change grants these new bodies the authority to determine all policy matters within their respective market domains, a significant departure from the previous, more centralized system. The primary objective is to harness the deep, specialized expertise that exists within the membership, allowing for more nuanced and timely policy formulation that directly reflects on-the-ground realities. This decentralization is designed to eliminate potential bottlenecks and streamline the path from industry consensus to actionable policy. The main ABI Board will consequently evolve its role, stepping back from granular policy debates to concentrate on overarching strategic issues that affect the entire insurance and savings sector. Its focus will now be on high-level regulatory, political, and consumer challenges, ensuring a cohesive industry-wide response to the most pressing cross-cutting concerns.
To maintain strategic alignment and ensure that the insights from these specialized boards inform top-level discussions, the chairs of the new product boards will be offered seats on the main ABI Board if their firms are not already represented. This integration mechanism is crucial for creating a feedback loop between market-specific policy development and the association’s overarching strategic direction. Director General Hannah Gurga emphasized that this new, member-driven approach was a direct outcome of feedback from the industry, which expressed a strong desire for greater influence over the organization’s priorities. The anticipated result is an ABI that is not only more agile and efficient but also more authentically representative of its members’ interests. This model of delegated authority is expected to foster a greater sense of ownership and engagement among member firms, as their experts are now directly empowered to lead and shape the policy agenda in their fields, ensuring the ABI remains at the forefront of industry advocacy.
A Sharpened Focus on Pensions
A critical component of the governance overhaul is the establishment of a new, highly specialized Pension Insurance and Investment Board, designed to intensify the ABI’s focus on key areas of the retirement landscape. This new board will take charge of policy related to the defined benefit (DB) pensions sector, the rapidly growing bulk purchase annuity (BPA) market, and annuity investment strategies. Its creation signals a recognition of the increasing complexity and importance of these markets, which require dedicated expertise and a proactive policy approach. Leading this new body will be David Richardson, CEO of Just Group, whose extensive experience will be instrumental in guiding its work. The board’s mandate is not only to shape policy but also to oversee the Investment Delivery Forum, a critical initiative tasked with monitoring the industry’s substantial £100 billion investment commitment. This commitment, stemming from the recent Solvency II reforms, is a cornerstone of the sector’s contribution to national infrastructure and sustainable growth.
The Investment Delivery Forum’s oversight role is particularly significant, as it ensures transparency and accountability for the industry’s investment pledges. The forum will track progress against the £100 billion target, a substantial portion of which is earmarked for UK-based projects. Reports indicated that £10.9 billion was already invested in the UK during 2024, demonstrating tangible progress even before the forum’s formal establishment under the new structure. The Pension Insurance and Investment Board, under Richardson’s leadership, is therefore positioned to play a pivotal role in facilitating further investment, addressing regulatory hurdles, and showcasing the insurance sector’s vital contribution to the broader economy. This dedicated focus ensures that the unique challenges and opportunities within the DB and BPA markets receive the specialized attention they warrant, strengthening the ABI’s capacity to advocate effectively for a stable and prosperous retirement savings environment for millions.
Redefining Long-Term Savings and Adequacy
Addressing the Defined Contribution Challenge
In parallel with the creation of the new pensions board, the existing Long-Term Savings Board has been strategically repurposed to concentrate exclusively on the defined contribution (DC) workplace pension market. This sharpened focus acknowledges that the challenges facing DC savers are distinct from those in the DB space and require a dedicated and specialized policy agenda. The board will now spearhead the ABI’s efforts to address one of the most pressing long-term societal issues: ensuring retirement adequacy for a generation of savers who rely primarily on DC schemes. Aviva’s Michele Golunska will serve as chair, bringing a wealth of experience in the workplace pensions sector to the role. Her leadership will be crucial in driving forward initiatives aimed at improving savings rates, optimizing investment strategies for growth, and enhancing member engagement to help individuals achieve better outcomes in retirement. The board will grapple with complex policy questions surrounding auto-enrollment thresholds, contribution levels, and the development of effective decumulation pathways.
The redefined mission of the Long-Term Savings Board reflects an industry-wide recognition that the “freedom and choice” reforms have placed greater responsibility on individuals to manage their retirement funds, creating a need for robust support systems and effective policy frameworks. The board’s work will be central to developing industry consensus on solutions that can help close the persistent retirement savings gap. This includes exploring innovative products, promoting financial education, and advocating for regulatory adjustments that encourage long-term investment and secure income streams in retirement. By dedicating a senior board, led by a prominent industry figure, to the specific challenges of the DC market, the ABI is signaling its commitment to playing a leading role in shaping a sustainable and adequate retirement system for the future. This move ensures that the voice of the DC sector is clearly articulated and forcefully represented in policy debates with government and regulators.
Laying the Groundwork for Future Security
The ABI’s comprehensive governance reforms represented a foundational step toward building a more effective and member-centric organization. The appointments of senior industry leaders like David Richardson and Michele Golunska to chair the newly focused boards underscored a deep commitment to leveraging market-specific expertise in the policy-making process. By creating autonomous bodies with clear mandates, the association has streamlined its operations, enabling it to respond with greater agility to market developments and regulatory changes. This new structure not only empowered members by giving them a direct hand in shaping the agenda but also clarified the strategic role of the main ABI Board, allowing it to concentrate on the most significant cross-sector challenges. The clear demarcation of responsibilities between the product boards and the main board was designed to foster a more efficient and impactful advocacy framework, ensuring the industry spoke with a unified and authoritative voice on critical issues. The overhaul was a proactive measure to ensure the association’s long-term relevance and effectiveness.
