FCA to force GI firms to reveal claims stats

Ryan Bembridge

January 30, 2019

The Financial Conduct Authority plans to make it compulsory for general insurance providers to report stats showing who has the best and worst rate of paying out on claims.

Since 2016 the FCA has piloted publishing stats showing which insurers have the best and worst rate of paying out, as well as the payout size and the claim frequency.

The regulator also plans to extend the scope to show where consumers are unhappy and have made a complaint as part of the claim process.

The FCA is seeking feedback on the proposals until 30 April.

In 2014 the FCA found issues of poor value for money in the GI market, which prompted this push for more transparency.

Christopher Woolard, executive director of strategy and competition, said: “It is encouraging to see that the value measures pilot has been successful and that firms have already been using the data to make changes and product improvements.

“We have identified poor product value as a key area of harm in this market. The proposals we have set out today aim to increase competition on product value, which will benefit firms and consumers.”

What the latest claim stats show

At the same time the FCA published general insurance claims stats about the firms with the best and worst rate of paying out on claims between August 2017 and August 2018.

Firms with the lowest claims acceptance rate for home insurance were Brit Syndicates (80-82.4%), Ageas (82.5-84.9%), Great Lakes (85-87.4%) and St Andrews (85-87.4%).

Meanwhile the best, with an acceptance rate between 97.5% to 100%, included Zurich, Liberty and Royal & Sun Alliance.

Hiscox had the highest average claim payout, between £8,000 and £8,499.

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