We wrote recently about the new financial regulator: the Financial Conduct Authority (FCA). And only two months after it came into being, it’s announced a review of the insurance industry and the way customers are treated – particularly when they make a claim.
The review was announced at the recent annual meeting of the British Insurance Brokers Association (BIBA) by the head of the FCA Martin Wheatley. And we believe this is great news for policyholders.
The announcement comes at a time when there has been a steady rise in complaints against insurers over the way their claims have been dealt with, and more and more of these are being upheld in favour of the customer. In particular, Mr Wheatley said his investigation would look at any insurance company which is “dragging its heels – or trying to wriggle out of its responsibility to pay legitimate claims.”
The key areas of the insurance review include:
- Whether consumers’ experiences vary according to whether it they bought insurance directly or through a broker.
- How clearly insurers communicate exactly what the policy covers.
- How well insurers explain claims processes to consumers up front.
- Whether payments are being made fairly and consistently.
- Whether claims departments are as well-resourced as the sales departments which are pushing the products.
At Morgan Clark, we know only too well how difficult some claims can be. We look forward to the results of the investigation, which are expected at the end of the year.