Britain’s monetary watchdog on Thursday laid out its efforts to boost requirements within the residence and journey insurance coverage market after a shopper group made a uncommon “super-complaint” in opposition to the regulator, accusing it of letting prospects down.
The Monetary Conduct Authority (FCA) mentioned it was investigating two insurers, had blocked a 3rd from working, and mentioned three others had been contemplating whether or not they owed prospects compensation.
The regulator mentioned it had additionally commissioned three unbiased critiques into companies’ programs and controls, whereas three senior managers had agreed to repair issues and think about redress funds. It gave no additional particulars.
The transfer follows a September super-complaint from shopper group Which?, which accused the FCA of failing to guard prospects and tolerating severe failings available in the market. In response, the watchdog promised to speed up efforts to enhance requirements.
After an in-depth assessment of residence and journey insurance coverage in July, the FCA mentioned it could subsequent yr do extra to enhance claims dealing with and assist prospects higher perceive what their insurance policies cowl.
“We’ll be monitoring shopper outcomes and can proceed to carry companies and their senior leaders to account for making enhancements, to assist construct belief and ensure folks get truthful worth insurance coverage,” mentioned Graeme Reynolds, the FCA’s director of competitors and interim director of insurance coverage.
Rocio Concha, Which? director of coverage and advocacy, welcomed the FCA’s pledge to sort out issues with customer support, claims dealing with, product gross sales and coverage phrases.
However she warned: “These points have been allowed to fester for years, so the FCA should now seize the chance to take sturdy motion to stamp out widespread dangerous follow and points with how the markets are working.”
Tremendous-complaints give sure shopper teams authorized powers to boost issues on behalf of huge numbers of consumers that they imagine have been considerably harmed by market practices.
Hannah Gurga, director basic of the ABI insurer business group, mentioned the business was targeted on driving additional enhancements.
(Reporting by Kirstin Ridley; modifying by Mark Potter)