The FCA has published Thematic Review 15/6 Handling of insurance claims for Small and Medium-Sized Enterprises (SMEs), that can be accessed here.

The Review is aimed at a number of parties involved in the claims process, including insurance intermediaries. SME claims experience was focused upon as they were felt to be similar to retail clients in terms of sophistication, knowledge and experience. A further reason was that SME claims often involve multiple parties.

The Review found that a significant gap appears to exist between SME expectations and the claims experience they actually received:

• Overall SME perceptions were poor (some stated they had not been treated fairly);
• SMEs received poor communications about claims progress;
• Confusion existed as to who was responsible for driving the claims outcome;
• Sums assured were often inadequate to cover the loss incurred.

In turn, the FCA has set out its expectations in relation to claims handling. Firms should:

• Have due regard to the information needs of their customers during the claims handling process;
• Handle claims promptly and fairly;
• Clearly communicate any delays in reaching a settlement;
• Carefully consider the review findings and analyse what changes they need to make to ensure that SME claimants are treated fairly.