Which? has called on the Financial Conduct Authority (FCA) to crack down on insurers that are causing "significant harm" to consumers during the claims process.

A report by the consumer champion revealed that almost half (48%) of all people making a claim about home, travel, motor and pet insurance experienced at least one problem in their claim journey.

Which? added that these problems include having to repeatedly chase insurers for information on their case and insurers not identifying and responding appropriately when people are struggling as a result of the incident which led to their claim.

Director of policy and advocacy at Which?, Rocio Concha, said: "This research paints a shocking picture of insurers’ failure to handle customers’ claims in a timely, empathetic way.

"It’s particularly concerning to see how people in vulnerable circumstances due to the event that led to their claim are being failed by their insurers."

Insurers has been tied into complying with the FCA’s Consumer Duty since July 2023, which sets out requirements for firms to follow to deliver good outcomes for their customers.

However, the regulator has long-standard requirements and guidance on the consumer outcomes that insurers should be providing when handling insurance claims, many of which predate the Consumer Duty.

As a result, Which? has launched a campaign to end the "insurance rip-off", calling for the FCA to clamp down on car and home insurers charging customers who can only afford to pay for cover monthly and face high interest rates on payments as a result.

Managing director at MorganAsh, Andrew Gething, said: "The Which? report is a depressing read and highlights a recurring theme where vulnerable customers regularly experience outcomes that are worse than the resilient. With Consumer Duty now in place and customer vulnerability guidelines well established before then, poor outcomes such as these should be minimal.

"A systematic problem for financial services firms is a lack of investment in systems and processes to identify and monitor customer vulnerability. Without this critical step, firms do not have the necessary data to meet the needs of those most susceptible to harm or to ensure such poor outcomes are minimised. Technology is proving to help firms mitigate this onerous task, all while delivering a far better and bespoke service to clients and importantly, meet the requirements of Consumer Duty and the regulator."

---