Which? Super-complaint to the FCA

On 23 September 2025, ‘Which?’ submitted a super-complaint to the Financial Conduct Authority (FCA), raising urgent concerns about poor consumer outcomes in the home and travel insurance markets. With the FCA in receipt of the super-complaint, it has 90 days to provide a response – i.e. by 22 December.

This article summarises the super-complaint and outlines key actions that insurers in these markets should consider when preparing for potential FCA scrutiny and regulatory change the complaint could trigger.

Super-complaints are a powerful mechanism for designated consumer bodies to prompt regulatory action when market practices significantly harm consumer interests. While used sparingly, they have historically led to major intervention, such as the following examples from the insurance market:

• Citizens Advice – Payment protection insurance (2005): This super-complaint prompted escalation actions from the Office of Fair Trading (OFT) and the Financial Services Authority (FSA), including enforcement and fines against dozens of firms and individuals.
• Citizens Advice – “Loyalty penalties” (2018): More recently, this super-complaint alleged the use of “loyalty penalties” within pricing for longstanding customers in five markets, including the home insurance sector, which resulted in the General Insurance Pricing Practices (GIPP) reforms in 2022.

The Which? super-complaint has been lodged at a time when the FCA is balancing the need to support growth and competitiveness and follows hot on the heels of more than two years work for insurers on embedding the Consumer Duty. Firms will watch the FCA’s response closely to gauge the short- and medium-term implications.

The super-complaint sets out Which?’s view that there is substantial evidence to show that the home and travel insurance markets are failing consumers in three key areas:

1. Poor claims handling: Poor customer outcomes driven by delays, a lack of transparency and high levels of rejected claims.
2. Inappropriate sales processes: Sales of unsuitable products or add-ons, with insufficient explanation of coverage, exclusions and excess.
3. Lack of application and enforcement of FCA rules and other relevant laws: A persistent gap between regulatory requirements and actual market practices, with inadequate oversight and accountability across the sector.

The super-complaint is premised on evidence gathered through publicly available data from the FCA and Financial Ombudsman Service (FOS), as well as Which?’s own analysis of policy wordings and market research. Collectively, Which? alleges the evidence points to systemic issues that undermine consumer confidence and indicate an urgent need for regulatory intervention. 

Which? wants the FCA to take action in three areas:

1. Immediate intervention: Urgently intervene to tackle the failure of home and travel insurance firms to comply with their regulatory and legal obligations. This includes taking formal enforcement action where necessary to force change and act as a deterrent.
2. Comprehensive market study: Launch a market-wide review to investigate the underlying market dynamics that drive poor customer outcomes in these markets.
3. Enhancement of consumer protection frameworks: Jointly review with the government relevant insurance-related consumer protection rules and legal frameworks, assessing how they operate in practice and identifying areas for enhancement to better safeguard customers.

These actions are intended to restore consumer confidence, promote good customer outcomes and drive meaningful change across the insurance sector. 

Which? challenges whether firms in these markets are consistently meeting the standards set by the Consumer Duty. It highlights concerns about the maturity of insurers’ frameworks and controls, including their ability mitigate risks in real-time.

To support its complaint, Which? cited the FCA’s 2023 general insurance value measures data and pointed to lower claims acceptance rates within home and travel insurance in comparison to other business lines.

The super-complaint brings to light several recurring practices within these markets, with the potential to undermine customer outcomes and consumer confidence, including:

• Complex or unclear policy wording: Many consumers find it difficult to interpret their policy’s coverage, exclusions and excesses, resulting in unexpected claims denials and an erosion in consumer trust.
• Renewal pricing practices: Longstanding customers often face “loyalty penalties” and disproportionate premium increases compared to new customers with similar risk profiles. Whilst home and motor insurance are subject to the FCA’s GIPP rules, these requirements do not apply to travel insurance.
• Unfair or delayed claims handling: Poor customer outcomes as a result of claim processing times, ineffective oversight of third parties with claims handling responsibilities, high claim rejection rates, and inadequate communication with claimants throughout the claims journey.
• Product bundles and add-ons: Insurers frequently bundle products or sell add-ons that provide little additional value and/or are poorly explained at the point of sale.
• Poor accessibility for vulnerable customers: Certain consumer groups, including the elderly or customers with characteristics of vulnerability, encounter barriers when seeking information, making claims, or attempting to resolve disputes.

Collectively, these practices reflect issues that undermine consumer trust, hinder effective competition, and raise questions about whether insurance firms have yet to fully embed requirements of the Consumer Duty.

Depending on the outcome, insurers can anticipate a period of intensified scrutiny and potential intervention.

To strengthen their ability to respond to any interventions, firms should consider the following suggested actions:

• Understand their exposure to the practices complained about:
  • Understand distribution strategies and the sales processes within them.
  • Consider the approach to claims rejections for breach by customers and their alignment to existing statutory and regulatory requirements.
  • Understand exposure to identified issues such as storm damage or missed connections.
• Consider their claims handling arrangements: Firms should already have considered their position against the areas identified in the FCA’s July 2025 claims handling  review and taken steps to address any weaknesses. Where they received direct feedback from the FCA, they should ensure that actions taken are considered alongside insights from the FCA’s broader claims handling publication and wider lessons learned from the super-complaint.
• Prioritise outcomes for vulnerable customers: Ensure frontline staff are equipped to provide effective support and facilitate reasonable adjustments. Firms should consider the accessibility of their communications, effectiveness of staff training and availability of dedicated resources.
• Prepare for potential regulatory engagement:
  • Anticipate information requests from the FCA for data, documents and evidence of consumer outcomes.
  • Enhance lines of accountability and readiness to respond to regulatory queries.
  • Review governance so that boards and SMFs can explain and evidence current outcomes and corresponding actions. This increases the need for effective outcomes monitoring frameworks that align with the FCA’s expectations (see its 2024 review for example).

This super-complaint represents a pivotal test of the Consumer Duty embedding within home and travel insurance. The complaint has put a spotlight on persistent weaknesses in claims handling, fair value evidence, customer understanding and the oversight of third-party arrangements. It also signals higher expectations for outcomes monitoring and evidence.

Insurance firms who respond proactively are likely to deliver better outcomes in practice through improved fair value assessments, strengthened claims controls, and prioritised support for vulnerable customers – helping reduce regulatory risk and build consumer trust.

There is also a wider opportunity. By addressing the issues raised before regulatory intervention may compel them to, insurance firms can differentiate themselves. Those who move first are likely to be best placed to thrive in a market shaped by rising consumer expectations and enhanced regulatory oversight.

We can support your response in several ways, including:

• Strategy and business model: supporting insurers to adapt business models and distribution strategies in response to regulatory change and evolving customer needs.
• Regulatory insights: providing practical guidance on FCA expectations on firms’ claims handling arrangements.
• Customer outcomes: enhancing claims processes, customer journeys, and support for vulnerable customers through data-driven insights and journey mapping.
• Data and outcomes monitoring: leveraging analytics and FCA value measures to monitor outcomes, evidence fair value, and identify improvement opportunities.
• Governance: strengthening governance and accountability frameworks to demonstrate robust oversight of customer outcomes.