FCA has published the results of its thematic review of mobile phone insurance. It found several issues that created what it described as a gap between what firms deliver and what customers have been led to expect. Specifically, FCA found instances of:
- ineffective product governance;
- product design that did not meet customers' needs;
- lack of fairness and clarity in terms and conditions;
- poor sales practices;
- slow, unfair claims handling; and
- failure to comply with complaints handling rules.
Firms have assured FCA they will review their practices and deliver better quality. FCA will use its findings as part of its wider work on general insurance add-ons and will take action if firms cannot prove they are treating their customers fairly. (Source: FCA Publishes Mobile Phone Insurance Review)