US EditionRegulator 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 UK's financial regulator has directed insurance providers to enhance their claims handling procedures after uncovering significant shortcomings within the sector.
- This directive follows the FCA's finding that recent motor insurance premium rises result mainly from uncontrollable external cost pressures, not increased firm profits.
- The FCA also revealed that premium finance allows many consumers, especially vulnerable ones, to spread costs, but some firms charge much higher margins than their costs justify.
- The FCA found that motor insurance claim costs rose by £2.3 billion from 2019 to 2023, largely due to higher expenses related to fixing modern vehicles, shortages of spare parts, and a rise in vehicle thefts.
- The FCA plans ongoing supervisory action and will publish a final report by the end of 2025 to promote fair claims handling and address premium finance concerns.
15 Articles
15 Articles
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Filing a car accident claim may seem straightforward, but many potential pitfalls can delay compensation or reduce the amount you receive. Whether dealing with minor vehicle damage or serious injuries, knowing what not to do is just as important as knowing what to do. Here are ten common mistakes to avoid when filing a car accident claim. 1. Failing to Report the Accident Some drivers try to handle accidents privately to avoid insurance incre…
Rising motor insurance costs driven by claims - Credit Connect
New research by the Financial Conduct Authority (FCA) has revealed that while rising motor insurance premiums are largely driven by external cost pressures, shortcomings persist in how some insurers handle claims. FCA analysis shows that increases in the cost of motor claims – due to higher prices for cars, parts, labour, energy and more complex cars and supply chains – have contributed to premium increases. The cost of hire vehicles, the number…
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