TR14/8 - Insurers’ management of claims – household and retail travel

This report summarises the findings of our thematic review into claims handing in household and retail travel insurance, which assessed the extent to which consumers as claimants are at the heart of insurers’ businesses.

Who should read this paper?

The report is aimed at general insurance firms, insurance distributors, relevant trade associations and consumer bodies.  It may also be of interest to third party suppliers such as claims adjusters, builders and emergency assistance services and some individual household and retail travel insurance consumers.

Thematic Review TR14/8[1]

Research papers

Experience of insurance claimants consumer research report[2]

Perceptions of insurers’ management of claims: findings from a survey of members of the Chartered Insurance Institute (CII)[3]

What was the scope of the review?

We focussed our attention on claims management in household (both buildings and contents) and retail travel insurance.  We engaged with a range of insurance firms which we selected using criteria including size, product range and business model.  Our aim has been to understand consumers’ experience at the point of claiming.  In addition to our work with firms we carried out both quantitative and qualitative research amongst successful and unsuccessful claimants and we undertook in conjunction with the Chartered Insurance Institute a survey of its members.  

What did we find?

Across all of the policyholders we surveyed, 64% were either ‘satisfied’ or ‘very satisfied’ with their experience, which we see as broadly positive.

We also found a number of areas where insurers could further increase consumer satisfaction. The key issues to emerge were:

• 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 in relation to medical conditions (travel).
• Consumer outcomes in long chains of delegation.
• The clarity of product documentation.

What are the next steps?

We expect insurers to reflect on the detailed findings in this report and consider how they can respond within their own businesses and, where appropriate, collectively as a sector.

Building on the findings of this work we will undertake thematic work later this year to consider whether the expectations of commercial customers, particularly smaller businesses, are met in the claims process, where poor behaviours could lead to poor customer outcomes and have a wider impact on trust in the market.

How can I find out more?

FCA engages with firms on claims handling thematic review[4]

Meeting the growth challenge[5]