In May 2013 the FCA launched a thematic review into the claims process in the insurance market, looking at trends across the general insurance market, with a particular focus on household and travel claims.
Earlier this month the FCA published its initial findings. The FCA found that 65% of household insurance customers were satisfied with the way their claim had been handled; and 64$ of travel insurance claimants were satisfied.
The FCA recently held an engagement seminar at its London headquarters to seek input from a range of firms, trade bodies and consumer groups.
Based on its work so far, the FCA is not proposing any new requirements or rule changes in this area.
The initial findings are broadly positive and the FCA uncovered no evidence of systematic attempts to deny valid claims, squeeze settlement costs or slow claims down. Nevertheless, the FCA has identified a number of areas where improvements will further increase customer satisfaction. These include:
- how in-bound claims calls are recorded and used;
- the ownership of a claim and communication with clients whilst it is being progressed;
- management of supply chains in household insurance claims;
- how medical conditions are dealt with in travel insurance;
- handling of claims with long chains of delegation; and
- clarity of product documentation.
The FCA’s final report is due to be published next month.