Millions of UK consumers who rely on home and travel insurance to shield them from life’s curveballs are now at the center of a major consumer rights battle. The watchdog group Which? has filed a rare and powerful “super-complaint” to the Financial Conduct Authority (FCA), alleging that the insurance sector is riddled with systemic failings—failings that have left many policyholders feeling more distressed by the claims process than by the incidents that prompted them to seek help in the first place.
According to BBC News, Which? launched its super-complaint against the home and travel insurance markets on or before September 22, 2025, describing these sectors as “broken.” The move follows more than a year of research and campaigning by the consumer champion, which uncovered what it calls widespread problems in how policies are sold, explained, and—crucially—how claims are handled. The complaint is not a routine grievance; super-complaints are reserved for situations where a large number of consumers are believed to be significantly harmed by industry-wide practices, and they legally require a response from the FCA within 90 days.
“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,” said Rocio Concha, Which?’s director of policy and advocacy, as quoted by BBC News. She emphasized the gravity of the watchdog’s intervention, saying, “Which? using its legal powers to submit a super-complaint is a major intervention—but we believe it is necessary as serious failings in home and travel insurance have been tolerated for too long by the insurance industry and its regulator.”
The complaint zeroes in on three core issues. First, it highlights the way insurance claims are handled, noting that many are outsourced to third-party specialists—sometimes to the detriment of clear communication and fair outcomes. Second, it points to sales practices that Which? argues are misleading or confusing, leaving customers uncertain about what their policies actually cover. Finally, the group accuses the FCA of failing to provide adequate consumer protection, despite having conducted several studies into the market and acknowledging “a number of failures.”
The stories unearthed by Which? put a human face on these systemic issues. One particularly striking case, reported by both BBC News and additional sources, involved Yvette Greenley, who was due to celebrate her 60th birthday on a week-long holiday in Egypt with her sister. Their flight from Luton Airport was forced to turn back two hours into the journey due to a technical fault, abruptly ending the holiday before it had even begun. While the airline, WizzAir, refunded the cost of the tickets, Ms. Greenley’s insurer initially refused her £140 claim for accommodation and travel expenses, arguing that the holiday had technically started the moment the plane took off. “I was flummoxed, then fuming about it. They seemed to dismiss the fact that the plane turned around,” she told BBC News. Only after Which? intervened did the insurer, Axa Partners, reverse its decision, settle the claim in full, and offer compensation for the delays. Axa Partners later said, “Upon further review, we have settled her claim in full and offered compensation in recognition of the delays.”
This is far from an isolated incident. BBC News has previously reported on a man whose home was damaged by Storm Darragh, only to have his insurer initially refuse to pay for repairs because the windspeed was judged to be 2mph below the company’s definition of a storm. Other cases include insurers recommending medical repatriation against expert advice or pricing vulnerable customers—such as those with cancer—out of the travel insurance market entirely.
The numbers behind these stories are just as troubling. According to Which? estimates, around 30 million people in the UK have buildings and contents insurance, and a similar number purchase annual or single-trip travel cover each year. Yet the likelihood of a claim being accepted varies wildly depending on the type of insurance. While car insurance boasts a 99% claim acceptance rate, only 63% of buildings insurance claims and 80% of travel insurance claims are upheld, according to research cited by both BBC News and Which?. For single-trip travel insurance, the acceptance rate stands at roughly 80.4%.
James Daley, managing director of the independent consumer group Fairer Finance, lent his support to the super-complaint, telling BBC News, “The FCA has only recently finished a number of studies looking at this market—and while it acknowledged a number of failures, it seems to have no appetite to tackle these.”
For its part, the FCA has acknowledged the concerns and pledged to respond within the legally mandated 90-day window. A spokesperson told BBC News, “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 FCA’s review highlighted problems with claims outsourcing and ambiguous definitions—such as what constitutes a “storm”—that have tripped up consumers seeking legitimate payouts.
The insurance industry, meanwhile, has defended its record. The Association of British Insurers (ABI), which represents providers, told BBC News, “Our members work hard to ensure customers know the details of policies and handle claims as quickly and efficiently as possible.” The ABI pointed out that, in the first half of 2025 alone, insurers paid out over £1.7 billion for more than 300,000 home insurance claims. In 2024, travel insurers paid out £472 million across more than 500,000 claims. “We’re working closely with the regulator to ensure good outcomes for customers and will engage with Which? to understand the details of its concerns,” the ABI spokeswoman added.
Still, Which? remains adamant that more must be done. “Our evidence that the home and travel insurance markets are not working well is overwhelming,” Concha told the press. “It’s time for the FCA to get a grip on the home and travel insurance markets and urgently intervene to make sure insurers up their game. This super-complaint should mark a turning point that leads to fundamental changes in how insurance companies treat their customers.”
The FCA now faces a ticking clock, with a legal obligation to respond to the super-complaint by late December 2025. For millions of policyholders, the outcome could reshape not only how insurance is sold and managed, but the very trust that underpins the industry.
