The general insurance sector can learn from their protection peers’ example with progress made on claims disclosure.
But protection providers should go even further by publishing the average time taken to pay a claim.
This is according to Johnny Timpson, a member of the Financial Conduct Authority’s Financial Consumer Services panel, in providing evidence to the Financial Services Regulation Committee at the House of Lords as part of its Consumer Market Inquiry earlier this morning.
Backing for super complaint
Asked by the committee whether he backed the September 2025 Which? super complaint over systemic failings in the home and travel insurance markets, Timpson revealed he was initially unsure.
“In the end I came down on the side of the need for it given the fact that a third of building insurance claims are declined,” Timpson said.
“This is largely due to the fact that consumers either don’t understand the scope of the cover they have purchased or there has been an issue with non-disclosure.”
CI claims
Citing an example of where progress can be made, Timpson pointed to the life insurance sector in the mid-noughties when the percentage of critical illness insurance claims paid was in the 70s.
“That was on the verge of giving rise to a super complaint,” he maintained.
“The big issue was again, lack of consumer understanding and disclosure.
“The mere threat of a super complaint served as a catalyst to bring the various trade bodies and insurance together to look at what we can do before a super complaint crystalises.”
Consumer testing
That period of reflection led the insurance industry to do a deep dive in trying to understand why non-disclosure was happening and testing with consumers on the way that questions were framed and the sequence of the questions, Timpson continued.
“And equally they were testing with consumers their understanding and what could be done to improve their understanding of the breadth and depth of product,” Timpson added.
“The industry also volunteered and was encouraged to disclose the percentage of claims that were paid.
“As far as I’m aware it’s the only sector of the financial services industry that discloses claims paid.”
Going further
But Timpson added that he would like the protection sector to go further.
“They could go a little bit further and inform the consumer about the average time to pay a claim because I think that helps consumers make better informed decisions,” Timpson continued.
“I think the general insurance sector needs to take learning from where the life insurance sector was – particularly given the fact that the vast majority of consumers are buying general insurance and travel insurance from price comparison sites.
“There’s learning that can be taken to check are these questions consumers can engage with and understand? Are they framed the right way? Is the sequencing correct?”
Following the protection sector’s example
Asked whether other types of insurance can follow the protection sector’s example on claims disclosure, Timpson said he “passionately” believes that that should happen.
“This is particularly given the AI-adopted world we live in now, I don’t see why that can’t be the case,” he added.