Recently, the FCA’s Chief Executive Martin Wheatley announced that the FCA would be launching a thematic review into the insurance claims process. The review will focus on household and travel claims, considering whether their claims’ culture is fit for the modern world.
At the British Insurance Brokers’ Association (BIBA) conference in May 2013, the FCA’s Chief Executive Martin Wheatley announced that the FCA would be launching a thematic review into the insurance claims process.
Martin Wheatley preceded this announcement by affirming the need for smarter regulation to protect both consumers and insurance firms. He mentioned the need to be a forward-thinking regulator, ready to interpret smoke signals, and noted the following concerns relating to personal lines insurance claims:
“We know complaints about insurance products are on the rise. We know these complaints are more likely to be upheld in favour of the customer than ever before. And, significantly, we know the large majority of these complaints – 64% according to Which? – are directly related to claims.
“I think it is right to address public concerns that imply policy holders might be facing delays; poor customer service; or having perfectly valid claims unfairly declined.”
The review will focus predominantly on household and travel claims, and will be conducted by an FCA team, in partnership with firms and customers. Whilst Wheatley mentions the possible amendments to FCA rules following the review, he asked insurers to start considering whether their claims’ culture is fit for the modern world.
It seems the FCA intends not only updated regulations relating to claims, but a drastic overhaul of claims culture throughout the UK insurance industry.
What do you think of these changes and the effect they’ll have on the industry? Feel free to share your comments in our LinkedIn Group.
– Jen Harrington