Context
The House of Lords Financial Services Regulation Committee, chaired by The Baroness Noakes DBE, has launched an inquiry into the regulation of the consumer home and travel insurance markets. It is unclear why Parliament has chosen to open this inquiry given the Which? Super-Complaint (which the FCA has responded to) and the fact that this forms a large part of the FCA’s ongoing work as outlined in the recent Insurance Regulatory Priorities Report.
The inquiry is focused on how these two markets are regulated, covering the regulation of insurance distribution (how insurance is sold to consumers, both directly and through intermediaries) and insurance claims handling, as well as the enforcement of these regulations and the resolution of disputes between insurance firms and consumers.
Key points to note and next actions
The Committee is seeking evidence on a number of questions which are set out in the Call for Evidence. They include:
- What are the key areas of concern for consumers in the regulation of home and travel insurance?
- What impact has Consumer Duty had on the consumer insurance market?
- Does the current regulation of insurance distribution and sales ensure that consumers purchase appropriate home and travel insurance?
- Are there any changes that should be made to the regulatory requirements?
- Are consumers’ insurance claims handled fairly?
- Do cash settlements deliver good outcomes for consumers?
- Are there any gaps in the current legislation or regulatory framework for the consumer insurance market
The committee welcomes responses from anyone with answers to the questions in the call for evidence. The deadline to submit evidence is 5:00pm on 26 June 2026.