FCA Response to Which? Super-complaint

On 18 December 2025, FCA published a response to the super-complaint submitted by Which? on 23 September 2025.

The super-complaint addressed features of the UK home and travel insurance markets. It claimed that manufacturers and distributors of insurance products demonstrated poor claims handling and inappropriate sales practices. It concluded that the FCA had failed to meet its statutory objective to secure “an appropriate degree of protection for consumers”.

The FCA response flags up some of the work that it is already doing in this area, as well as pointing to some additional actions.

FCA response

The FCA acknowledges that data such as complaints and claims acceptance rates shows that firms must do more to comply with the Consumer Duty in this area.

The FCA outlines work it has undertaken or is undertaking, including on Guaranteed Asset Protection Insurance, supporting the government motor insurance taskforce with recommendations, and evaluating its pricing reforms which were found to be effective in reducing price-walking. The FCA also produced a detailed roadmap for further work in these areas in July 2025.

The FCA gives examples of specific relevant regulatory action it has taken, including launching two enforcement investigations; commissioning independent reviews of three firms’ claims handling systems; and providing feedback to major price comparison websites and expanding analysis of sales processes and consumer understanding.

The areas in relation to which the FCA proposes to expand its work are:

• Improving claims handling and service quality by reviewing firms’ customer service and delivery and how they oversee third parties that handle claims. The FCA states that it had already planned to do work to obtain a greater understanding of the quality of outsourcing, with particular focus on the use of managing general agents. However, it will now broaden the work to consider different delegated authority models and remuneration arrangements and how firms manage resulting conflicts.
• Improving customer understanding by analysing how firms’ different sales processes affect the outcomes people are getting. 

Unsurprisingly, the FCA disagrees with the super-complaint’s assertion that the FCA has failed to enforce its own rules and relevant consumer law. It rejects the suggestion that it carry out a market study at this stage in order to understand poor consumer outcomes. The FCA says it has considered two theories of harm to address issues raised by Which? that consumers are provided with inadequate information about claims handling outcomes and key features and limitations of products: (1) that sales and distribution processes are distorting competition by limiting consumer ability to compare on quality and suitability and (2) that firms’ claims-handling incentives and supply chain arrangements may reduce the quality of claims outcomes.

The FCA intends to carry out a focussed piece of analysis on the first issue, and the second will be dealt with by the existing programme of work.

The FCA also rejects Which?’s analysis that it is not enforcing relevant law, although it notes that it needs to reflect the Digital Markets, Competition and Consumers Act (DMCC Act) in the Handbook and it will consult on this in Q1 2026 (the FCA does say that it has already used its powers under the DMCC to require unauthorised law firms to provide information about exit fees) .

Conclusion and next steps

The FCA will provide a public update on its actions in response to the super-complaint by the end of 2026.