According to a recent super-complaint launched by the consumer group Which?, issues within the home and travel insurance sectors are critical enough to warrant significant attention. The complaint asserts that the processes for filing claims can result in greater distress than the initial incidents prompting those claims.
Which? reported troubling examples of customer experiences, including a case where an insurer refused a payout for a canceled holiday because the trip had technically commenced prior to the flight being turned back. This has raised questions about customer treatment during the claims process. The Association of British Insurers (ABI) countered these concerns by stating that insurance providers are committed to efficiently handling claims and have paid out substantial sums to policyholders.
Rocio Concha, director of policy at Which?, highlighted ongoing deficiencies in the insurance market, stating they have been overlooked by both the financial industry and regulator, the Financial Conduct Authority (FCA). She noted that the super-complaint is a significant measure, deployed when widespread consumer harm is identified.
Statistics show that approximately 30 million individuals have buildings and contents insurance, with a similar number purchasing travel insurance in the past year. Claims acceptance rates vary significantly, with 99% approval for car insurance claims, whereas only 63% and 80% of buildings and travel insurance claims, respectively, are upheld.
The super-complaint focuses on critical issues including outsourcing practices related to claims handling, sales tactics perceived to obscure policy coverage, and a lack of adequate regulatory oversight by the FCA. The FCA acknowledged the existence of various shortcomings in the claims handling process and reassured that steps would be taken to hold insurers accountable.
The ABI reported over £1.7 billion in payouts for home insurance claims and £472 million for travel insurance claims in recent months, emphasizing their efforts to ensure customer understanding and satisfaction.
Source: https://www.bbc.com/news/articles/c87yey5neggo?at_medium=RSS&at_campaign=rss