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ABI to address SME failings after UK regulator’s review

The Association of British Insurers (ABI) says it will work to improve areas found wanting in a Financial Conduct Authority review, including underinsurance and customer service.

“Insurers are committed to delivering the best possible service to SMEs,” ABI Director of Regulation Hugh Savill said.

“Insurers and intermediaries will carefully consider these findings, including addressing the issue of underinsurance, and make any changes necessary to ensure SME claimants get the best possible claims service.”

The regulator’s review of SME claims handling found significant cases of underinsurance and unsatisfactory customer service.

Poor communication between businesses and insurers was a recurring theme.

“We expect customers to be at the heart of how [insurance] companies run their businesses and for companies to handle claims promptly and clearly communicate the reasons for any delays in the process,” the regulator said.

The findings were released last week. The review examined claims of £5000 ($9907) and more involving first-party non-motor cases such as flood, theft and business interruption.