FCA finds travel insurance policies have been mis-sold
A report from the UK’s Financial Conduct Authorty (FCA) focusing on 15 firms offering home, car and travel insurance products on behalf of big insurance companies has shown that some customers were being sold products they didn’t need or weren’t eligible for.
“We found widespread examples of poor practices across the sector,” said the FCA’s director of retail supervision and authorisations Jonathan Davidson. “In many cases, firms were simply failing to understand and manage the risks arising from their appointed representatives’ activities.”
According to the report, certain agents were selling travel insurance to people with medical conditions that invalidated the insurance and meant that if they needed to make a claim they wouldn’t be covered.
The FCA reports that two of the firms that it investigated have been ordered to cease business. Another two have been requested to bring in an expert to review their sales and look for evidence of mis-selling. “All principal firms need to consider these findings and look again at their practices,” Davidson concluded.