Which? responds to Financial Conduct Authority proposals on insurance claims handling and premium finance

Rocio Concha, Which? Director of Policy and Advocacy, said:

"From high rejection rates and poor claims handling processes, to exorbitant levels of interest on monthly repayments, it’s clear the insurance market is failing consumers.

 "Too many home and motor insurance customers pay for cover monthly not through choice, but out of financial necessity. It is unacceptable that, for years, many customers have been charged excessive levels of interest on those repayments. While the regulator has today ruled out a number of interventions, it must now be clear about what enforcement action it will be taking.

"The FCA has uncovered significant issues with how well firms handle home and travel claims - just as it did over a decade ago. This mirrors Which? research, which found the process can be a nightmare for many consumers, particularly when insurers outsource to third parties. 

“The time for simply asking firms to improve has long passed. The regulator must now use its enforcement powers to force real change and send a clear signal that bad practice will not be tolerated. Only then can the insurance market start to work more fairly for consumers."

ENDS