FCA report identifies best and worst practices
5th October 2022Tweet
Insurers have been praised for the flexibility they have shown in handling business interruption claims.
The Financial Conduct Authority (FCA) welcomed the way the industry reallocated resources to make interim payments quickly, while proactively communicating with policyholders throughout the claim.
Good practice examples included firms employing technical expertise to accelerate the claims process, issuing payments based on only basic information, creating multiple communication channels, and proactively asking for further details to progress claims.
However, the FCA also raised concerns over delays and the service provided to some vulnerable customers. It found examples of poor processes affecting an insurer’s ability to react to claims delays, policy wording unavailable to claims handlers, and rigid communication strategies that did not suit all policyholders.
It has now published its findings to help insurers deliver a fair and consistent service to customers throughout the claims process.
Sheldon Mills, Executive Director of Consumers and Competition, said, “We have been working alongside insurers to ensure that claims are settled quickly, but we are not complacent, and this report is clear that, while we have observed good practice, there are lessons to be learned for the handling of all claims. As consumers and businesses across the country are affected by inflationary pressures and the rising cost of living, it is crucial that insurers are handling claims promptly and treating customer fairly.”Tweet