UK’s Regulator Criticizes Claims Handling for SMEs
Monday, 05 25 2015, Category: Insurance and Reinsurance, Country: United Kingdom
The UK’s Financial Conduct Authority criticized the insurance industry for “poor practices” and “significant” failures in handling claims for small and medium-sized enterprises (SMEs).
The regulator said a review of the experiences of business customers showed more dissatisfaction with insurers than a similar survey last year had found among consumers. The FCA cited cases where policies were inadequate to cover losses and delays in visits by loss adjusters, lack of clarity over who was responsible to resolve a claim and poor communication.
“It is vital that claims are taken seriously and processed promptly,” Linda Woodall, the FCA’s acting director of supervision, said in a statement on Friday. “We expect all firms to carefully analyze the findings of the review and make any necessary changes to their approach to ensure that SME claimants are treated fairly.”
Source: Insurance Journal