Super-complaint launched against 'broken' insurance industry
Summary
Consumer group Which? has launched a "super-complaint" against the home and travel insurance sectors in the UK, describing them as "broken". The complaint highlights issues with how insurance claims are handled and suggests that the Financial Conduct Authority (FCA) has not adequately protected consumers. This complaint requires a response from authorities within 90 days.Key Facts
- Which? is a consumer group advocating for customers' rights.
- A "super-complaint" is a formal action taken on behalf of consumers when a large number of people are perceived to be harmed by a specific sector.
- Which? claims that the way home and travel insurance claims are handled is problematic.
- An example given is an insurer initially refusing to pay a claim for a cancelled holiday because the flight had technically started.
- About 30 million people in the UK have buildings and contents insurance; a similar number have travel insurance.
- The claim acceptance rate is high for car insurance but lower for buildings and travel insurance.
- The complaint targets claims handling, sales practices, and regulatory oversight by the FCA.
- The FCA must respond to the super-complaint within 90 days.
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