FCA commits to market improvements in home and travel super complaint response

The FCA has said it will expand ”the significant work” it has planned to “improve standards in the home and travel insurance markets” as part of its response to the Which? super complaint, published this morning (18 December 2025). 

Consumer champion Which? utilised its statutory powers to submit this super complaint to the FCA back in September this year, owing to concerns over the home and travel insurance markets. 

These markets were the focus of the complaint because they showed some of the lowest levels of claims acceptance rates across the market. 

In its response, the FCA said: “Over the next year, we will do more to improve claims handling, by reviewing firms’ customer service and delivery and how they oversee third parties that handle claims. 

“[We will also] improve customer understanding of what their insurance covers, by analysing the different ways firms are selling products.” 

The FCA conducted its own review of the home and travel markets back in July, since which it has enforced two enforcement cases, stopped one firm from doing business until it fixes “problems” and launched three independent reviews into firms’ systems and controls. 

Graeme Reynolds, director of competition and interim director of insurance at the regulator, added: “We’ve set out more detail on the action we’ve already taken to fix problems and we’re expanding our existing workplan to improve the claims process and consumer understanding of their cover. 

“We’ll be monitoring consumer outcomes and will continue to hold firms and their senior leaders to account for making improvements, to help build trust and make sure people get fair value insurance.” 

New and expanded

New actions to be taken by the FCA to address problems in claims handling include expanding the scope of planned outsourcing oversight to include different delegated authority models and considering how it captures data on claims outcomes.

In the sales processes area, the regulator also noted that it would now analyse how different sales processes affect consumer outcomes, review how home and travel insurance firms are improving consumer understanding and work with industry to find new ways to promote this consumer understanding. 

Crucially, the FCA said it would now follow up with firms to ensure they comply with rules and consumer protection legislation where it has identified potential concerns around specific policy terms raised by Which?. 

Industry response

In response to the FCA statement on its expanded work, ABI director general Hannah Gurga said: ”The FCA has provided helpful clarity on how home and travel insurers can do even more to support their customers, while recognising that most people are satisfied with how their claim is handled. 

“Driving more improvements in the claims handling process and ensuring better customer understanding remains a top priority for us and our members. We look forward to working closely with Which?, the FCA and wider industry to build on the progress already made, strengthen trust in our sector and ensure people get the help they need when it matters most.”

James Daley, managing director for consumer organisation Fairer Finance, added: ”We’re pleased to see the FCA acknowledge the ongoing problems in the general insurance market. However, their response is unlikely to be sufficient to get to grips with the many and growing problems in this sector. 

”The insurance market is caught to a race to the bottom on price – leading to the hollowing out of products, as well as poorer claims experiences.

“The FCA has at least committed to continuing work streams looking at consumer understanding in this market – including a more detailed look at the link between the sales process and poor claims experience. It’s vital that this strand of work acknowledges and addresses the broader problems caused by hollowing out.”