The Financial Conduct Authority (FCA) in the UK has outlined a series of steps to examine and raise UK home and travel insurance standards in response to a super complaint filed by consumer body Which?.  

The FCA will focus on claims-handling practices and the clarity of information available to policyholders. 

Which? submitted its super complaint to the FCA in September 2025, raising concerns about how consumers are treated when making home and travel insurance claims, and urging greater regulatory attention.  

In its response, the FCA confirmed it is widening its scope of work in these areas. 

The FCA reported that 79% of customers who make an insurance claim are satisfied with the process, but noted that 31% find it difficult to assess the quality of policies due to insufficient information.  

It will focus on how insurers manage customer service, oversee third parties that process claims and communicate with customers. 

The regulator is also reviewing how insurance products are sold, with the aim of improving customer understanding of what is covered under their policies.  

The FCA has observed some insurers making changes in response to earlier recommendations.  

Findings from ongoing reviews will be shared with industry bodies and consumer groups to support informed purchasing decisions. 

Enforcement action continues where issues are identified.  

Since July, the FCA has initiated two enforcement cases, restricted the business growth of one company until necessary improvements are made, started three independent reviews into company systems and controls, and required three senior managers to address identified problems and consider possible redress. 

FCA competition director and insurance interim director Graeme Reynolds said: “We welcome Which? shining a light on issues we identified in home and travel insurance. 

“We have set out more detail on the action we have already taken to fix problems, and we are expanding our existing workplan to improve the claims process and consumer understanding of their cover. 

“We will 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.” 

Recent updates from the FCA include adjustments to insurance rules aimed at simplifying requirements for insurers and lowering costs, while maintaining appropriate levels of protection for small business clients.  

Insurers will have greater discretion over product review frequency and staff development requirements under these revised rules.