Consumer champion Which? has launched a formal ‘super-complaint’ to the Financial Conduct Authority (FCA), using its legal powers to address what it describes as widespread failings in the home and travel insurance markets.
The action follows more than a year of campaigning and focuses on two key sectors relied upon by tens of millions of customers, noting that they frequently demonstrate some of the lowest claims acceptance rates in the industry.
The complaint comes after the FCA itself has repeatedly published data highlighting industry problems. In its latest analysis of home and travel claims-handling, published in July, the regulator concluded there were “too many examples of customers not receiving the service they’re entitled to.”
Specific issues cited by the FCA include high rejection rates for storm damage claims, inappropriate use of cash settlements that risk leaving customers financially out of pocket, and a general lack of adequate oversight from insurers.
The Role of Staff Training
The regulator’s findings directly link substandard customer service to training and knowledge gaps. The FCA’s recent release, “Home and travel claims handling arrangements: good practice and areas for improvement” (published 22.07.2025), observed that effective staff training can significantly improve claims handling and lead to better customer outcomes.
The FCA provided an example of a firm that equipped frontline staff with tailored training and clear knowledge manuals, enabling them to provide clearer guidance and make more timely claims decisions.
In light of the super-complaint and the FCA’s focus on service, firms are being prompted to assess their claims handling arrangements.
Key questions firms should be asking themselves regarding staff training include:
- Is the training personalised to the individual?
- How do you ensure training materials are accessible and tailored to the actual challenges staff face in claims?
- What measures are in place to assess the effectiveness of training in improving customer outcomes?
- How do you empower agents to deviate from documented process to meet the needs of vulnerable customers?
- What controls ensure confidence in the accuracy and reliability of employee competence data used for decision-making?
- If you are outsourcing, how do you objectively and continually assess the competence and performance of selected providers – and what controls are in place to prevent material weaknesses?
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