On September 23, 2025, the UK’s insurance industry found itself under an intense spotlight, as the influential consumer group Which? filed a rare and sweeping super-complaint with the Financial Conduct Authority (FCA). The move, targeting the home and travel insurance markets, has sent ripples through the sector and sparked a heated debate about transparency, fairness, and trust in one of the country’s most vital financial services.
Which?’s decision to take this unusual step was not made lightly. Super-complaints are reserved for instances where a consumer body believes that a large number of customers are being significantly harmed by systemic issues across an entire sector. In this case, the group’s research and the voices of frustrated policyholders pointed to what Which? describes as "serious failings"—so much so that the experience of making an insurance claim, they argue, can sometimes be more distressing than the original problem that led to the claim in the first place.
Rocio Concha, director of policy at Which?, didn’t mince her words: "We have heard heartbreaking stories from people who have found the experience of dealing with an insurance company worse than the distressing life events that led to their claim." She called the super-complaint "a major intervention," emphasizing that such action is only used when widespread consumer harm is suspected. The group’s call to action is clear: urgent reforms are needed, both from the insurance industry itself and from the regulators tasked with protecting the public.
The focus on home and travel insurance is no accident. According to Which?, these two segments have some of the lowest claims acceptance rates in the industry. While 99% of car insurance claims are reportedly upheld, the figure plummets to 63% for buildings insurance and 80% for travel insurance. The implications are significant: millions of people in the UK—about 30 million with buildings and contents insurance, and a similar number buying travel cover annually—could be at risk of being left out in the cold when they need support the most.
Which? bolstered its complaint with vivid examples. Take the case of Yvette Greenley, whose much-anticipated birthday trip to Egypt was cut short when her flight was forced to turn back due to technical issues. While the airline refunded her ticket, her insurer initially refused to cover £140 in accommodation and travel expenses, arguing that the holiday had technically started before the disruption. "I was flummoxed, then fuming about it. They seemed to dismiss the fact that the plane turned around," Greenley explained. Eventually, after pushback, the insurer apologized and settled the claim, but the episode highlights the confusion and frustration many customers endure.
Stories like Greenley’s are not isolated. Which? reports a litany of complaints, including insurers refusing to pay for storm damage because wind speeds fell just below arbitrary thresholds, and instances where vulnerable customers—such as those with serious medical conditions—struggled to get fair treatment or even basic coverage. These experiences, Which? argues, are symptomatic of deeper problems: policy wording that is archaic and difficult to understand, inconsistent claims handling, and sales practices that leave customers unsure about what their policies actually cover.
The super-complaint identifies three key areas for reform. First, claims handling: many insurers outsource the process to specialists, and the results can be inconsistent and opaque. Second, sales practices: Which? contends that inappropriate and confusing sales tactics are widespread, leaving consumers in the dark about crucial details. Finally, regulatory oversight: the group accuses the FCA of failing to provide adequate protection, despite acknowledging recent shortcomings in its own studies.
Industry figures have weighed in, offering a mix of support, acknowledgment, and defense. James Daley, managing director of Fairer Finance, welcomed the Which? intervention, saying, "The insurance market is not currently working. While comparison sites have helped create price competition, they have also accelerated a hollowing out of products and services—meaning many consumers buy policies that don’t meet their needs. Many more find themselves let down by poor claims handling." Daley called for new rules and tougher enforcement of Consumer Duty, warning that "a trusted insurance industry underpins financial stability and is crucial if we are to return the economy to growth."
Similarly, Sara Perez, executive vice president at EIS, described the super-complaint as a consequence of an outdated, policy-centric mindset. "Consumers expect insurance to protect them when their home is burgled or when something goes wrong on holiday. Yet in too many cases, they only discover at the point of claim that their cover is riddled with exclusions they hadn’t realised were there, or that they are underinsured because their policy hasn’t kept up with life changes." Perez argued that the industry must move beyond its "policy-centric silos" and embrace customer-centric models powered by modern technology. "The time for patching over cracks has passed. If the industry is serious about repairing its relationship with consumers, it must re-platform around the customer—and do it now."
Not everyone agrees that the sector is failing as dramatically as critics claim. The Association of British Insurers (ABI) defended its members, highlighting the sheer volume and value of claims paid out. "In the first half of this year alone, insurers have paid out over £1.7 billion for more than 300,000 home insurance claims. Last year, travel insurers also paid out £472 million across more than 500,000 claims," a spokesperson told BBC News. The ABI insisted it is working closely with the FCA to ensure good outcomes for customers and will engage with Which? to address concerns.
The FCA, for its part, has acknowledged the issues. A spokesperson said, "We uncovered issues when we recently reviewed insurers' home and travel claims handling. We'll be holding them and their senior managers accountable for the changes needed." The regulator is now legally obliged to respond to the super-complaint within 90 days, raising hopes among consumer advocates that meaningful change might finally be on the horizon.
Meanwhile, the Chartered Insurance Institute (CII) offered a more measured perspective, noting that while most customers are satisfied, "around 4% of home, motor and travel insurance customers are dissatisfied with the service they receive. Although this is a small number, it amounts to over a million members of the public." The CII called for collaborative efforts to improve consumer protection, emphasizing the need for high standards of ethics, conduct, and professionalism across the sector.
Looking at the bigger picture, the volume of complaints is striking. In just the last five years, the Financial Ombudsman Service (FOS) has received nearly 190,000 insurance complaints, with motor insurance accounting for about a third and buildings and travel insurance following closely. High upheld rates—41% for motor, pet, and buildings insurance—suggest that many grievances are well-founded.
As the FCA prepares its official response, the insurance industry faces a pivotal moment. Whether the super-complaint leads to sweeping reforms or incremental improvements remains to be seen, but the message from consumers is loud and clear: trust must be rebuilt, and the old ways of doing business are no longer good enough.
