General Insurance Article - FCAs concerns over insurers valuation of vehicles


The Financial Conduct Authority (FCA) has identified shortcomings in how some motor insurance firms are valuing written-off or stolen vehicles.

 An FCA review has found evidence that suggests some firms are offering their customers less than their written-off or stolen vehicle is worth and, in some cases, are only increasing that offer when a customer complains.

 This comes despite the FCA’s previous warnings that insurers must not undervalue cars or other insured items when settling claims.

 The regulator is engaging with the firms included in its review to ensure they make improvements to address the FCA’s findings.

 Sheldon Mills, Executive Director, Consumers and Competition at the FCA said: 'Having your vehicle written off or stolen can be intensely stressful and we expect firms to offer the right support to help their customers.

 'We expect all motor insurers to take note of our findings and we are engaging directly with those that have issues that need to be addressed.'

 Insurers must handle claims promptly and fairly under FCA rules.

 Following the introduction of the Consumer Duty in July 2023, firms are also required to ensure consumers are at the heart of their business and must act to deliver good outcomes for them.

 Customers who think their claim may have been undervalued can complain to their insurer and then to the Financial Ombudsman Service if their complaint is not resolved.

 Read the FCA multi-firm review into insurers’ valuation of vehicles.

 The FCA’s Consumer Duty requires firms to act to deliver good outcomes for retail consumers, and that they are supported while using a financial product, including when they make claims.

 In December 2022 the FCA warned insurers not to undervalue cars and other insured items when settling insurance claims and set out our expectations for firms when handling claims. 

Back to Index


Similar News to this Story

Call for simplification of EU cybersecurity regulation
Insurance Europe has welcomed the European Commission’s review of the Cybersecurity Act (CSA) and the forthcoming digital omnibus initiative, supporti
7 California wildfire lessons learnt for European insurers
The devastating January 2025 wildfires in Los Angeles, which destroyed over 16 000 structures and caused insured losses of approximately USD 40 billio
Do not be left high and dry this summer
Aviva is urging caution as data reveals a correlation between warm weather and fire claims. Number of garden fire claims is already significantly high

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.