We are expanding the significant work we had planned to improve
standards in the home and travel insurance markets, following
Which?'s super complaint.
While 79% of consumers who make an insurance claim are satisfied
with how it was handled, our work shows 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, we will do more to:
- Improve claims handling, by reviewing firms' customer service
and delivery and how they oversee third parties that handle
claims.
- Improve consumer understanding of what their insurance
covers, by analysing the different ways firms are selling
products.
We're already seeing industry act on our calls to improve
customer understanding. We will use the findings from our reviews
to continue working with firms, trade bodies and consumer groups,
so people have the right information at the point of sale to make
informed decisions.
We will continue to act against insurance firms where we have
concerns. Since our review of home and travel insurers in July,
we have:
- Opened 2 enforcement cases.
- Stopped 1 firm from doing business until it fixes the
problems we identified.
- Launched 3 independent reviews into firms' systems and
controls.
- Made 3 senior managers agree to fix problems and consider
whether redress is due.
We use the best tools available to us to deliver the fastest
results for consumers. That isn't always through enforcement or
market studies, which inevitably take time.
Graeme Reynolds, director of competition and interim
director of insurance 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”.
Notes to editors
- Journalists can request a full copy of the response by
contacting sam.haidar@fca.org.uk.
- We published a package of reports in
July, outlining how the retail insurance market was working and
setting out actions for us and others to take.
- Our review of home and travel
claims handling found some issues with outsourcing and
storm cover definitions. We have set out more detail on the
action we have already taken and we will continue to act if
firms fall short of our expectations.
- We have shown we will hold firms to account where we see
problems. For example, by securing:
-
£200 million in
compensation for customers who were offered less money
than their written-off or stolen vehicle was worth.
- £70m in savings for consumers following our work on
Guaranteed Asset Protection insurance (GAP).
- £350k in compensation so far for 2,500 customers after
stepping in with one insurer over unclear endorsements on home
insurance policies.
- We have also taken significant action in the insurance
sector:
