The UK's financial regulator is set to significantly increase its scrutiny of the home and travel insurance sectors. This decisive move comes in direct response to a formal 'super-complaint' lodged by the consumer advocacy group Which?.
Consumer Champion Forces Regulatory Action
Which? submitted its super-complaint to the Financial Conduct Authority (FCA) in September 2025, utilising its unique statutory powers. This action culminated a year-long campaign highlighting declining standards that the group stated were negatively impacting tens of millions of policyholders across the country.
The complaint centred on two critical failings within the industry: the poor treatment customers frequently experience during the claims process, and the significant difficulties consumers face in understanding policy terms and conditions. Which? labelled many of these terms as "unfairly disadvantageous to consumers".
FCA's Own Findings Paved the Way
The regulator's response follows its own investigative report into claims-handling practices, published in July 2025. That study reviewed the processes of 15 home insurance providers and eight travel insurance firms.
While the FCA's report concluded there were substantial areas requiring improvement, Which? argued it did not go far enough, failing to address several vital issues that could cause consumer harm. This perceived shortfall motivated the consumer group to escalate matters via the super-complaint, aiming for a fundamental "reset of the markets" to better serve customer needs.
Regulator Vows Expanded Workplan
On Thursday 18 December 2025, the FCA publicly responded, committing to enhanced action. The watchdog pledged to do more to improve both claims-handling standards and consumer comprehension of insurance products.
This will involve conducting in-depth reviews of individual firms and increasing scrutiny of the various methods these companies use to sell their policies. Graeme Reynolds, the FCA's Director of Competition and Interim Director of Insurance, stated: "We welcome Which? shining a light on issues we identified in home and travel insurance."
He added: "We've set out more detail on the action we've already taken to fix problems, and we're expanding our existing workplan to improve the claims process and consumer understanding of their cover."
The industry's representative body, the Association of British Insurers (ABI), also commented. Hannah Gurga, ABI Director General, said: "The FCA has provided helpful clarity on how home and travel insurers can do even more to support their customers, while recognising that most people are satisfied with how their claim is handled."
She confirmed the industry's willingness to collaborate, noting: "We look forward to working closely with Which?, the FCA and wider industry to build on the progress already made, strengthen trust in our sector, and ensure people get the help they need when it matters most."
