Which? Unleashes Scathing Super-Complaint Against "Broken" Insurance Industry

Which? Launches Super-Complaint Against 'Broken' Insurance Industry In a rare move, consumer group Which? has launched a super-complaint against the home and travel insurance sectors, alleging that they are "broken" and failing to provide adequate support to customers. The super-complaint, which is an action by a consumer body on behalf of customers, was filed with the Financial Conduct Authority (FCA) in response to numerous complaints about insurers' handling of claims. According to Which?, many consumers have reported experiencing distressing and frustrating interactions with insurance companies, including being denied payouts for legitimate claims. "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." Which? highlighted several cases where insurers had refused to pay out for legitimate claims. For example, 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. The Financial Services Compensation Scheme (FSCS) has reported that in 2020, there were over 1 million complaints about insurance companies, with many more going unreported. The FCA has stated that it will investigate Which?'s super-complaint and consider taking action against insurers who are found to be failing their customers. The insurance industry's trade body, the Association of British Insurers (ABI), responded to the super-complaint by stating that providers work hard to help customers and handle claims efficiently. "Insurers have paid out many millions of pounds in recent years," said a spokesperson for the ABI. "We will continue to work with the FCA to ensure that our members are meeting their obligations to customers." The launch of Which?'s super-complaint has sparked debate about the need for greater regulation and oversight of the insurance industry. Some experts argue that the current regulatory framework is inadequate, allowing insurers to prioritize profits over customer needs. "This is a wake-up call for the insurance industry," said Dr. Emma Bond, a consumer law expert at the University of Bristol. "The FCA must take swift action to address these failings and ensure that consumers are protected." As the investigation into Which?'s super-complaint continues, it remains to be seen what actions will be taken against insurers who are found to be failing their customers. However, one thing is clear: the insurance industry has a long way to go in terms of providing adequate support and protection for its customers. Background The super-complaint process was established by the FCA in 2019 as a way for consumer groups to bring collective complaints on behalf of customers. It allows the regulator to take action against companies that are found to be failing their customers. Additional Perspectives "This is not just about individual insurers, it's about a systemic failure within the industry," said Rocio Concha, director of policy at Which?. "We need to see real change and a commitment from the insurance industry to put customers first." "The FCA must take a tough stance on this issue and hold insurers accountable for their actions," said Dr. Emma Bond, a consumer law expert at the University of Bristol. Current Status Which?'s super-complaint is currently under investigation by the FCA. The regulator has stated that it will consider taking action against insurers who are found to be failing their customers. Next Developments The outcome of Which?'s super-complaint and any subsequent actions taken by the FCA will have significant implications for the insurance industry and consumers nationwide. Stay tuned for further updates on this developing story. *Reporting by Bbc.*