Your help helps us to inform the story
From reproductive rights to local weather change to Big Tech, The Independent is on the bottom when the story is growing. Whether it is investigating the financials of Elon Musk’s pro-Trump PAC or producing our newest documentary, ‘The A Word’, which shines a lightweight on the American girls combating for reproductive rights, we all know how necessary it’s to parse out the info from the messaging.
At such a vital second in US historical past, we want reporters on the bottom. Your donation permits us to maintain sending journalists to talk to either side of the story.
The Independent is trusted by Americans throughout the complete political spectrum. And not like many different high quality information shops, we select to not lock Americans out of our reporting and evaluation with paywalls. We imagine high quality journalism ought to be out there to everybody, paid for by those that can afford it.
Your help makes all of the distinction.
The City regulator is being urged by Which? to crack down on some practices by insurers.
The client group raised considerations that some corporations might be failing to fulfill their obligations beneath the Financial Conduct Authority (FCA)’s Consumer Duty, which requires corporations to concentrate on buyer outcomes by placing themselves in clients’ footwear and pro-actively take motion.
It stated the impression of poor therapy from insurance coverage corporations may be devastating for shoppers, lots of whom have already had a traumatising expertise reminiscent of a fireplace or flooding at their house.
A brand new coverage report from Which? referred to as Risky enterprise: Consumer confusion round basic insurance coverage stated: “Given low claims acceptance charges for some merchandise, this means some shoppers are receiving nasty shocks when their claims are rejected.”
The report stated three “widespread misconceptions” had been recognized by Which? that will lead shoppers to an incorrect assumption about whether or not they’re coated.
The regulator should present its enamel and begin taking powerful enforcement motion in opposition to insurers which might be failing to fulfill their Consumer Duty obligations
Rocio Concha, Which?
It stated firstly, once they take out cowl, “shoppers have little understanding of any limitations of this cowl, (for instance) that journey insurance coverage could not cowl missed flight connections, or that house insurance coverage solely covers particular insured occasions”.
Secondly, when a state of affairs is because of occasions past a client’s management, they usually assume they are going to be coated, the report stated.
And thirdly, whereas shoppers perceive that negligence and put on and tear are elements that may restrict insurance coverage cowl, there may be typically little understanding of what would possibly represent negligence or put on and tear, it stated.
Which? is asking for the FCA’s ongoing overview of insurers’ claims-handling preparations to result in motion to handle claims rejection charges for shoppers with house and journey insurance coverage.
The client group stated analysis signifies {that a} majority of shoppers (65%) imagine that insurance coverage rules imply merchandise should meet a minimal degree of canopy, and greater than half (54%) imagine the FCA will make sure that all insurance coverage merchandise present sufficient safety.
Yonder carried out analysis on behalf of Which? amongst 4,000 folks throughout the UK in October 2024.
Rocio Concha, Which? director of coverage and advocacy, stated: “The FCA has the ability and duty to step in and shield shoppers. The regulator should present its enamel and begin taking powerful enforcement motion in opposition to insurers which might be failing to fulfill their Consumer Duty obligations, or to adjust to FCA insurance coverage guidelines or wider client legislation.”
The FCA has been wanting into varied points of insurance coverage and is conserving watch in the marketplace to assist guarantee shoppers get what they count on.
It has reviewed how corporations are supporting their clients and utilizing communications to help knowledgeable decision-making and can publish findings within the months forward.
In the second quarter of 2025, the FCA additionally goals to launch findings into how swiftly the insurance coverage trade responds to claims, together with the place clients usually tend to present traits of vulnerability.
It has additionally highlighted good and poor observe relating to how corporations are monitoring client outcomes and appearing on perception from complaints to drive enhancements beneath the Consumer Duty.
An FCA spokesperson stated: “We count on corporations to assist shoppers to make knowledgeable selections to purchase insurance coverage merchandise that meet their wants.
“We’ve have intervened immediately with corporations the place we’ve discovered poor customer support and claims dealing with.
“Currently, we’re how shortly insurers reply to claims as a part of a wider analysis of the market, with findings set to be revealed later this yr.”
A spokesperson for the Association of British Insurers stated: “Insurers admire how anxious making a declare may be, and their first precedence will at all times be to help their clients.
“While the overwhelming majority of claims are accepted and dealt with shortly, our members proceed to work arduous to fulfill their clients’ wants and regulatory necessities, together with the Consumer Duty.
“The FCA not too long ago revealed its priorities beneath the Consumer Duty for the rest of 2024/25, and we are going to proceed working carefully with the regulator, members and stakeholders to discover more practical methods to enhance client outcomes.
“As ever, it’s important to learn your coverage’s phrases and circumstances to make sure that the extent of canopy meets your wants, and you may communicate to your insurer you probably have any questions.”
