Mon, 22 Sep 2025

Mon, 22 Sep 2025 Super-complaint launched against 'broken' insurance industry

A consumer group says making a claim can be more distressing than the original incident itself.

* Which? has launched a super-complaint against the home and travel insurance sectors, claiming they are "broken" and that making a claim can be worse than the original incident.
* The complaint cites cases where insurers have refused to pay out for cancelled holidays or damage, even when the policyholder was entitled to compensation.
* According to Which?, 99% of car insurance claims are upheld, but acceptance rates fall to 63% for buildings insurance and 80% for travel insurance.
* A case study by Which? highlights a woman who had her holiday cancelled due to technical difficulties, only to be refused compensation by her insurer because the trip had technically begun.
* The complaint argues that insurers' sales practices are misleading and that the Financial Conduct Authority (FCA) has failed to provide adequate protection for consumers.
* Insurers have defended themselves, saying they work hard to help customers and handle claims efficiently, but Which? says this is not enough and that change is needed.
* A response to the super-complaint is required within 90 days, with the FCA promising to hold insurers accountable for changes needed.
  >>