The UK's FCA is expanding insurance oversight to fix poor claims handling, misleading sales, and low trust, with reforms targeting 2026 improvements.

The UK's Financial Conduct Authority (FCA) is expanding its oversight of home and travel insurance following a super-complaint by consumer group Which?, focusing on improving claims handling, transparency, and consumer understanding of coverage. While acknowledging progress, the FCA admitted persistent issues like low claims acceptance rates, misleading sales practices, and poor customer service, particularly with third-party claims handling. It will conduct deeper reviews, enforce accountability, and monitor outcomes, building on actions including halting one firm’s operations and securing commitments from senior managers. The FCA aims to ensure fair value and trust in insurance markets, with reforms expected to deliver measurable improvements by 2026.