Lord Mendelsohn – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-24.

To ask Her Majesty’s Government what steps they are taking to encourage better customer service in insurance companies that allow for consumers to make free claims.

Lord O’Neill of Gatley

The Government is determined that insurers should treat customers fairly and firms are required to do so under the Financial Conduct Authority (FCA) rules.

The FCA’s Insurance Conduct of Business Sourcebook (ICOBS) sets the conduct standards required of insurance firms in relation to their business which aim to ensure consumers are treated fairly. This includes provisions relating to the handling of claims by insurers. ICOBS states that insurers must handle claims fairly and promptly; provide reasonable guidance to help a policyholder make a claim, and appropriate information on its progress; not reject a claim unreasonably; and settle claims promptly once settlement terms are agreed.