Summary
The UK's financial regulator, the Financial Conduct Authority (FCA), has told insurance companies to improve how they handle claims and make their policies easier to understand. This comes after a complaint from the consumer group Which? about problems in the home and travel insurance sectors. The FCA plans to investigate claim processing issues and aims to make policies clearer to customers.
Key Facts
- The Financial Conduct Authority is increasing its oversight of insurance claim handling and policy clarity.
- The consumer group Which? submitted a "super-complaint," highlighting problems in the home and travel insurance sectors.
- A super-complaint indicates significant harm affecting many consumers.
- Which? identified three main concerns: claim handling, sales practices, and inadequate consumer protection.
- In 2024, 99% of motor insurance claims were accepted, while only 80% of travel and 74% of home insurance claims were approved.
- The FCA aims to expand its work to ensure better claim processes and policy understanding.
- The Association of British Insurers stated that making improvements is a priority for the insurance sector.
- Consumer groups demand stronger actions from the FCA to address long-standing issues in insurance markets.
