The Financial Conduct Authority (FCA) conducted an examination and discovered that certain companies were undervaluing their vehicles and, in certain instances, only raised the offer in response to a customer’s complaint.
The exercise was a response to the watchdog’s earlier warnings regarding behavior in determining claim values, the most recent of which was issued in 2022.
The FCA stated that in order to make sure the companies it reviewed improved, it was corresponding with them.
Its regulations require insurers to settle claims promptly and equitably.
Since the Consumer Duty was implemented in July of last year, businesses have also had to make sure that customers are at the center of their operations and take steps to meet their needs.
