’The home insurance market is currently failing to meet customer needs and require urgent regulatory action,’ says director of policy and advocacy
Claims acceptance rates across the home insurance sector have remained “stubbornly low”, according to Which?
The consumer champion conducted an analysis of the FCA’s latest general insurance value measures, with it concluding that the ”market is currently failing to meet customer needs and requires urgent regulatory action”.
According to Which?, some home insurers are still accepting fewer than half of claims, with three firms – Esure, Lloyds Banking and Rentokil – each have claims acceptance rates of 45% to 50% for buildings only cover.
Which? also found that EUI, Integra Solutions and Intact Insurance, formerly RSA, accepted between 50% to 55% of claims for buildings only cover.
And across the market, for buildings only cover, less than two in three (63.2%) claims were accepted. In the year before, this figure was 63%.
Meanwhile, when it came to claims on combined buildings and contents policies, AA, Esure, Lemonade and Lloyds Bank accepted 55% 60%.
“For AA, Esure and Lloyds, 10% to 15% of claims these firms received regarding combined buildings and contents cover resulted in a complaint,” Which said.
”For Lemonade, this figure was 5% to 10%, according to FCA data. Lemonade says the true figure is closer to 0% to 5% and as a new entrant to the market, the published figures are based on a comparatively small number of claims.”
’Super complaint’
This analysis comes after Which said in September 2025 that is is using its statutory powers to submit a “super complaint” to the FCA over its concerns about the home and travel insurance markets.
Read: FCA taking action against firms after finding evidence of ‘poor’ handling of insurance claims
Read: Motor outperforms home in latest FCA value measures data
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The complaint is about these markets as a whole, not specific firms.
Which? said its latest analysis ”is further evidence as to why the home insurance market is simply not working for customers”.
Rocio Concha, Which? director of policy and advocacy, said: “The home insurance market is currently failing to meet customer needs and require urgent regulatory action.
“With claims acceptance rates across the sector still stubbornly low, many customers are forced to endure ordeals with their insurer that can become far more stressful than the original event they are claiming for.
“It’s time for the regulator to get tough with firms failing consumers, sending a clear message that poor performance won’t be tolerated any longer.”
What did firms say to Which?
AA Underwriting
”The AA is working hard to ensure our customers know what is covered and which claim types are valid before submissions can be made.
“The AA always takes feedback seriously and have made a series of changes to reduce complaints by helping inform customers about the claims process, as well as improving the claims journey service for every customer.”
EUI - Part of Admiral Group
“Our acceptance rate reflects that we log most customer contact, including general queries, as a claim. We also record claims for incidents which are out of scope of the policy or where customers do not have cover in place. We use all this information to improve our products, customer experience and to ensure clearer understanding of policy coverage.
“Our priority is to be there for customers when things go wrong and on the occasion that we don’t get things right first time, we work hard to quickly resolve issues and learn the lessons to ensure that we are able to meet our customers’ needs.”
Intact Insurance
“In 2023, we announced our decision to exit the UK personal insurance market. Since then, we’ve stopped writing new home insurance business and from December this year, we’ll no longer be renewing existing policies.
“We are confident in how we govern and oversee our claims processes to deliver fair value. We operate well established controls across our portfolios and our customer outcome monitoring helps to verify the quality of our products and the services we provide.”
Integra Insurance
“Integra Insurance Solutions take customer outcomes extremely seriously and always aim to pay claims wherever possible.
“In cases where a claim is not covered, this is due to clear policy exclusions that are set out and communicated transparently in the policy wording and customer documentation. We continually review our products and processes to ensure they deliver fair value and good outcomes for our policyholders.”
Lemonade
“The figures referenced in this release relate to 2024, the first months after our UK B&C product launched in July. At that early stage the book was very small and many claims were still open, so early snapshots are not representative of mature performance. In 2025, our developed acceptance rates are materially higher, at approximately 65% to 70%.
“We put customers at the center of everything we do.”
Lloyds Banking Group
“Our value measures data includes a range of customer enquiries, while other firms exclude these. Lloyds accepted 83% of claims in 2024 and our policy cover is strong relative to the market.
“We’re committed to working with the FCA, industry peers and consumer groups to improve the clarity of these metrics because a more consistent approach will help consumers make better-informed decisions.”
Rentokil Insurance
“Rentokil Insurance has provided specialised property insurance cover for 50 years. Our expert assessors work to reassure our policyholders, helping them understand the root causes of property problems and advising on solutions.”
Esure
Which? claims that Esure declined to comment.
His career began in 2019, when he joined a local north London newspaper after graduating from the University of Sheffield with a first-class honours degree in journalism.
He took up the position of deputy news editor at Insurance Times in March 2023, before being promoted to his current role in May 2024.View full Profile
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