Home and motor insurers have been blasted by the UK financial watchdog over their treatment of vulnerable customers and their handling of complaints during the cost-of-living crisis.
The Financial Conduct Authority (FCA) said some insurers had failed to give customers appropriate settlements, handle their complaints in time and identify customers in need of support.
There were also instances of motor insurance customers being offered a lower price than their car’s fair market value after it had been written off, which directly goes against FCA rules
"Timely and fair claims handling is especially vital during the cost of living squeeze,” said Sheldon Mills at the FCA.
‘While we have seen many firms treating their customers correctly, we found too many examples of customers not receiving the service they’re entitled to,” Mills added.
“It’s clear from these findings that parts of the insurance market aren’t currently working for consumers,” said Rocio Concha, Which? Director of policy and advocacy.
“For it to be properly effective, the FCA’s new Consumer Duty must be backed by tough enforcement action for firms who fall below the required standards, and the regulator should consider naming insurers who have carried out bad practice so consumers can work out which companies are most likely to offer a good service.”