FCA reviews UK home and travel insurance standards

Core Viewpoint - The Financial Conduct Authority (FCA) in the UK is taking steps to improve home and travel insurance standards following a super complaint from consumer body Which?, focusing on claims-handling practices and information clarity for policyholders [1][2]. Group 1: FCA Actions and Focus Areas - The FCA is expanding its work to enhance customer service management, third-party claims processing oversight, and communication with customers [2][3]. - The regulator is reviewing the sales process of insurance products to improve customer understanding of policy coverage [3]. - The FCA has initiated enforcement actions, including two cases and restrictions on one company's growth until improvements are made [4]. Group 2: Consumer Satisfaction and Information Clarity - 79% of customers are satisfied with the insurance claims process, but 31% struggle to assess policy quality due to insufficient information [2]. - The FCA aims to monitor consumer outcomes and hold firms accountable for improvements to build trust and ensure fair value insurance [5]. Group 3: Regulatory Updates and Changes - Recent updates from the FCA include adjustments to insurance rules to simplify requirements for insurers and reduce costs while maintaining protection for small business clients [5]. - Insurers will have increased discretion regarding product review frequency and staff development requirements under the revised rules [6].