| Link(s): | The industry’s response to super-complaint from Which? | ABI abiresponsewhichsupercomplaintdec2025.pdf |
Context
The ABI has published a blog in which it introduces its response to the Which? super-complaint allegations of widespread issues with the home and travel insurance markets, particularly in relation to claims handling.
Key points to note and next actions
- While the ABI agrees on the need for improvements in the claims handling journey and people’s understanding of the insurance they’re buying, the suggestion of “widespread failings” across home and travel insurance markets is unwarranted in the ABI’s opinion. Which?’s conclusions are, according to the ABI, based on nine policy wordings, 24 interviews and 3,322 survey responses. The ABI does not believe that this reflects the scale of the home and travel insurance markets, which wrote 29 million policies in 2024 and paid out £3.5 billion across 582,000 claims.
- The ABI explains that the suggestion that the FCA has taken “little decisive action” also does not align with a regulator that has intervened robustly in recent years, including through pricing rules, GAP insurance reforms, and multi-firm reviews.
- Given the FCA’s active supervisory approach and industry-led improvements, the ABI does not believe a market “reset” or Which?’s recommendation for an FCA market study is necessary or beneficial.
- The formal response document sets out the ABI’s belief that there is no evidence of market failure, and that it will work with its members in 2026 to improve claims handling and customer understanding.