The Financial Conduct Authority (FCA) has undertaken a multi-firm review that identified shortcomings in how some motor insurers are valuing written-off or stolen vehicles.
The authority found evidence that suggests when handling claims, some firms are offering consumers a settlement price lower than their vehicle’s fair market value. Offers are only increasing in some cases and because of a customer complaint.
Under the Consumer Duty, firms should make sure consumers are at the heart of their business and act to deliver good outcomes for them. Motor insurers should review the FCA’s findings and make any changes necessary to ensure their own processes meet regulatory expectations.
Findings of multi-firm review into insurers' valuation of vehicles | FCA
