Super-complaint issued by Which? against travel and home insurance sectors 

Consumer body Which? has instigated a super-complaint after uncovering "widespread problems” in the travel and home insurance sectors.

 

It claims that regulator, the Financial Conduct Authority (FCA), is failing to “definitively tackle” the issues.

 

“We think that, as a result, too many customers are being sold policies that don’t end up delivering as expected, and that claims-handling service levels aren’t up to scratch,” Which? said.

 

It is calling for the FCA to launch an in-depth investigation of the market “to get to the bottom of what’s driving poor consumer outcomes for home and travel insurance customers”.

 

A year-long investigation by the consumer champion pointed to “systemic problems” with how policies are sold and explained, and  how claims are then handled.

 

The group’s policy and advocacy director Rocio Concha said: "Which? using its legal powers to submit a super-complaint is a major intervention - but we believe it is necessary as serious failings in home and travel insurance have been tolerated for too long by the insurance industry and its regulator. 

 

“Our evidence that the home and travel insurance markets are not working well is overwhelming, and we have heard heartbreaking stories from people who have found the experience of dealing with an insurance company worse than the distressing life events that led to their claim. 

 

"It’s time for the FCA to get a grip on the home and travel insurance markets and urgently intervene to make sure insurers up their game. 

 

“This super-complaint should mark a turning point that leads to fundamental changes in how insurance companies treat their customers.”

 

A spokesperson for the Association of British Insurers (ABI) told Which?: “Insurers take their responsibility to protect their customers incredibly seriously. As a crucial financial safety net, our members work hard to ensure their customers know the details of their policy cover and handle claims as quickly and efficiently as possible.

 

"In the first half of this year alone, insurers have paid out over £1.7 billion for more than 300,000 home insurance claims. Last year, travel insurers also paid out £472 million across more than 500,000 claims. 

 

“We’re working closely with the regulator to ensure good outcomes for customers and will engage with Which? to understand the details of its concerns.”