FCA expands insurance work in response to super complaint

The FCA is expanding planned work to improve standards in the home and travel insurance markets, following a super complaint from Which?.

While 79% of consumers who make an insurance claim are satisfied with how it was handled,  the FCA says "there’s room for improvement" - with 3 in 10 saying there isn’t enough information to judge the quality of different policies.  

Over the next year, the FCA says it will work to improve claims handling, by reviewing firms’ customer service and delivery and how they oversee third parties that handle claims.

It also aims to improve consumer understanding of what their insurance covers, by analysing the different ways firms are selling products.

Since the regulator's review of home and travel insurers in July, it has opened two enforcement cases, stopped one firm from doing business until it fixes the problems identified, launched three independent reviews into firms’ systems and controls, and made three senior managers agree to fix problems and consider whether redress is due.

In a statement today, the FCA says it uses "the best tools available to us to deliver the fastest results for consumers", noting that "that isn’t always through enforcement or market studies, which inevitably take time".

Graeme Reynolds, director of competition and interim director of insurance at the FCA, said: “We welcome Which? shining a light on issues we identified in home and travel insurance.

"We’ve set out more detail on the action we’ve already taken to fix problems, and we’re expanding our existing workplan to improve the claims process and consumer understanding of their cover.

“We’ll be monitoring consumer outcomes and will continue to hold firms and their senior leaders to account for making improvements, to help build trust and make sure people get fair value insurance”.