The FCA has published a thematic review report on insurers’ management of claims relating to household insurance (both buildings and contents) and retail travel insurance (TR14/8).

The review assesses the extent to which consumers as claimants were at the heart of insurers’ businesses, claimant satisfaction levels and insurers’ approaches to claims.

The review carried out both quantitative and qualitative research among successful and unsuccessful claimants, as well as a survey of members of the Chartered Insurance Institute (the results of which can be found in Appendix 1 and Appendix 2 to the report).

The FCA found that 64 per cent of all policyholders surveyed were satisfied or very satisfied with their experience, which the FCA described as “broadly positive”.

The FCA considers that the following seven areas should be regarded as key when considering how to increase customer satisfaction:

• recording and use of inbound claims calls (mainly household);
• communication and ownership throughout the claim;
• management of supply chains (household);
• the emergency assistance activities of travel insurers and the need for the right insurance;
• insurance relating to medical conditions (travel);
• consumer outcomes in long chains of delegation; and
• the clarity of product documentation.

The FCA plans to undertake thematic work later in 2014 to consider whether the expectations of commercial customers, in particular smaller businesses, are met in the claims process, where poor behaviours could lead to poor customer outcomes and could have a wider impact on trust in the market.

Copies of TR4/18  http://www.fca.org.uk/static/documents/thematic-reviews/tr14-08.pdf

FCA related webpage  http://www.fca.org.uk/news/tr14-8-insurers-management-of-claims-household-and-retail-travel