Finance
British regulator cracks down on home, travel insurers
Published by Global Banking & Finance Review®
Posted on December 18, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 18, 2025
2 min readLast updated: January 20, 2026
The FCA is taking action against home and travel insurers following a super-complaint, aiming to improve standards and protect consumers.
LONDON, Dec 18 (Reuters) - Britain's financial watchdog on Thursday laid out its efforts to raise standards in the home and travel insurance market after a consumer group made a rare "super-complaint" against the regulator, accusing it of letting customers down.
The Financial Conduct Authority (FCA) said it was investigating two insurers, had blocked a third from operating, and said three others were considering whether they owed customers compensation.
The regulator said it had also commissioned three independent reviews into firms' systems and controls, while three senior managers had agreed to fix problems and consider redress payments. It gave no further details.
The move follows a September super-complaint from consumer group Which?, which accused the FCA of failing to protect customers and tolerating serious failings in the market. In response, the watchdog promised to accelerate efforts to improve standards.
After an in-depth review of home and travel insurance in July, the FCA said it would next year do more to improve claims handling and help customers better understand what their policies 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," said Graeme Reynolds, the FCA's director of competition and interim director of insurance.
Rocio Concha, Which? director of policy and advocacy, welcomed the FCA's pledge to tackle problems with customer service, claims handling, product sales and policy terms.
But she warned: "These issues have been allowed to fester for years, so the FCA must now seize the opportunity to take strong action to stamp out widespread bad practice and issues with how the markets are working."
Super-complaints give certain consumer groups legal powers to raise concerns on behalf of large numbers of customers that they believe have been significantly harmed by market practices.
Hannah Gurga, director general of the ABI insurer industry group, said the industry was focused on driving further improvements.
(Reporting by Kirstin RidleyEditing by Mark Potter)
The Financial Conduct Authority (FCA) is a regulatory body in the UK responsible for overseeing financial markets and protecting consumers by ensuring that financial firms operate fairly and transparently.
A super-complaint is a formal complaint made by designated consumer groups to a regulatory body, highlighting issues that affect a large number of consumers and calling for action to address these concerns.
Home insurance is a type of insurance that protects homeowners against damages to their property and belongings, as well as liability for accidents that occur on their property.
Compensation in insurance refers to the payment made to policyholders for covered losses or damages as per the terms of their insurance policy.
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