"Insurers Urged to Improve Treatment of Vulnerable Customers and Claims Handling"

The Financial Conduct Authority (FCA) recently conducted a review to examine how home and motor insurers handle customers' claims, particularly for vulnerable customers. After an increased number of complaints about the insurance industry, the FCA uncovered issues such as lengthy complaints handling times, unfair settlements, inadequate monitoring of customer outcomes, and insufficient support for vulnerable customers. In response, firms have been asked to set things right and provide redress to those affected. The FCA also highlighted some examples of good practice that will be monitored. Sheldon Mills, Executive Director at the FCA, said that timely and fair claim handling is important in the current economic climate and that any issues will need to be addressed. Customers dissatisfied with their insurer's response have the option to raise a complaint with the Financial Ombudsman Service.