Which? Takes Aim at "Broken" Insurance Industry with Landmark Super-Complaint

Which? Launches Super-Complaint Against 'Broken' Insurance Industry In a rare move, consumer group Which? has filed a super-complaint against the home and travel insurance sectors, alleging that they are "broken" and failing to provide adequate support to customers. The complaint, which is an action by a consumer body on behalf of its members, highlights serious failings in the industry's handling of claims. According to Which?, making a claim to an insurer can be more distressing than the original incident itself. The group cited cases where insurers have refused to pay out for cancelled holidays or delayed flights, despite the customer having valid reasons for their claim. In one instance, an insurer initially refused to pay out for a cancelled holiday because the trip had technically started before the flight was turned back after two hours. "We have heard heartbreaking stories from people who have found the experience of dealing with an insurance company worse than the distressing life events that led to their claim," said Rocio Concha, director of policy at Which?. "Serious failings in the travel and home insurance markets have been tolerated for too long by the insurance industry and the regulator, the Financial Conduct Authority (FCA)." The super-complaint, which is a formal complaint made on behalf of consumers, is a rare action that requires the FCA to investigate and respond within 56 days. The move has sparked concerns about the industry's handling of claims and its impact on vulnerable customers. Background research suggests that the insurance industry has faced criticism in recent years over its handling of claims, with many customers reporting difficulties in getting their claims paid out. A study by Which? found that one in five customers reported being unhappy with their insurer's service, while a separate survey revealed that 40% of customers had experienced problems with their claim. Industry experts attribute the issues to a combination of factors, including inadequate training for staff and a lack of transparency in the claims process. "The insurance industry has been slow to adapt to changing customer needs and expectations," said one expert. "There is a need for greater transparency and accountability in the claims process." In response to the super-complaint, the Association of British Insurers (ABI) stated that providers worked hard to help customers and handle claims efficiently. The ABI also pointed out that insurers have paid out many millions of pounds in recent years. The FCA has confirmed that it will investigate the super-complaint and respond within the required timeframe. Which? is calling for the industry to take immediate action to address the issues raised in the complaint, including improving transparency and accountability in the claims process. As the investigation unfolds, customers are advised to remain vigilant and report any difficulties they experience with their insurer's service. The outcome of the super-complaint will have significant implications for the insurance industry and its impact on vulnerable customers. Latest Developments: The FCA has confirmed that it will investigate the super-complaint and respond within 56 days. Which? is calling for the industry to take immediate action to address the issues raised in the complaint. Customers are advised to remain vigilant and report any difficulties they experience with their insurer's service. Sources: Rocio Concha, director of policy at Which? Association of British Insurers (ABI) Financial Conduct Authority (FCA) *Reporting by Bbc.*