US Edition
Regulator finds ‘concerning’ evidence of poor handling of insurance claims
UNITED KINGDOM, JUL 22 – The Financial Conduct Authority found delays, high complaint volumes, and poor oversight in some UK insurers' claims, urging reforms to protect consumers amid rising motor premiums.
- The Financial Conduct Authority revealed in 2024 that insurers handle insurance claims poorly, particularly in motor and home sectors across the UK.
- This follows rising motor insurance claim expenses of £2.3 billion between 2019 and 2023, driven mainly by external costs like vehicle repairs, thefts, and part shortages.
- The FCA also reported widespread use of premium finance for insurance payments but found some firms earn disproportionately high margins, raising concerns over fairness for vulnerable customers.
- Only 32% of storm damage claims resulted in payments, and nearly 60% of motor policyholders paying by instalments did so out of necessity, often paying 8% to 11% more than annual upfront payments.
- The FCA plans further analysis and enforcement actions, aiming for coordinated efforts to improve claims handling and ensure fair value by the end of 2025.
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Coverage Details
Total News Sources14
Leaning Left2Leaning Right3Center3Last UpdatedBias Distribution38% Center, 38% Right
Bias Distribution
- 38% of the sources are Center, 38% of the sources lean Right
38% Right
L 25%
C 38%
R 38%
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