"Which? Blasts 'Broken' Insurance Industry with Landmark Super-Complaint"

Which? Launches Scathing Super-Complaint Against "Broken" Insurance Industry Consumer advocacy group Which? has launched a super-complaint against the UK's home and travel insurance industries, alleging that serious failings have been "tolerated for too long". The complaint cites examples of insurers denying legitimate claims, such as refusing to pay out for cancelled holidays due to technicalities. According to Which?, making a claim to an insurer can be worse than the distress of the original incident. In one case highlighted by the group, 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. This move is significant, as it highlights the need for greater accountability and transparency in the industry, potentially leading to changes in how insurance companies handle claims. The super-complaint, which is an action by a consumer body when a large number of customers are affected, says the home and travel insurance sectors are "broken". Which? highlighted several cases where insurers denied legitimate claims, including one instance where a policyholder was refused compensation for a cancelled holiday due to a technicality. In another case, an insurer took over 12 months to settle a claim. The insurers' trade body, the Association of British Insurers (ABI), responded to the super-complaint by saying that providers work hard to help customers and handle claims efficiently. However, Which? argues that this is not enough and that serious failings have been tolerated for too long. "This complaint highlights the need for greater accountability and transparency in the insurance industry," said a spokesperson for Which?. "We believe that insurers should be doing more to support their customers when they make a claim." The ABI acknowledged that there may be instances where claims are denied, but argued that these cases are rare. However, Which? argues that even one instance of a legitimate claim being denied is too many. The super-complaint is a significant move by Which?, as it highlights the need for greater accountability and transparency in the insurance industry. The outcome of this complaint will be closely watched by consumers and industry experts alike. In response to the super-complaint, the Financial Conduct Authority (FCA) has said that it will work with Which? to investigate the claims made against the insurers. "We take all complaints about financial services seriously," said a spokesperson for the FCA. "We will work closely with Which? to ensure that any issues identified are addressed." The outcome of this complaint is likely to have far-reaching implications for the insurance industry, potentially leading to changes in how insurance companies handle claims. As one expert noted, "This super-complaint highlights the need for greater accountability and transparency in the insurance industry. It's a wake-up call for insurers to do better by their customers." This story was compiled from reports by BBC Business and BBC Business.