ILC ARTICLE

FCA warns insurers against short-changing claimants

6th December 2022

The Financial Conduct Authority has warned insurers not to undervalue items when it comes to settling claims.

It has seen evidence of consumers offered settlements below the value of the car following a write off, with payouts only increasing if the policyholder complained.

Sheldon Mills, Executive Director, Consumers and Competition at the FCA, said, “When making an insurance claim, people shouldn’t need to question whether they are being offered the right amount for their written off car or other goods that they need to replace. 

“Insurance firms should offer settlements at the fair market value. This is especially important now as people struggling with the cost of living will be hit in the pocket at precisely the time they can ill afford it. 

“We are watching the behaviour of firms closely and will act quickly to stop firms and prevent harm to consumers where we see it.”