The Financial Ombudsman Service (FOS) has published the findings of research into underinsurance, misrepresentation and non-disclosure based on complaints it has received over the years from people not having the right insurance in place.
The report provides insight into a range of case studies from complaints resolved illustrating how misrepresentation and underinsurance can affect consumers’ home, motor and travel insurance claims and policies.
The FOS sets out the possible issues that can occur if an individual incorrectly answers question when taking out insurance cover. The report also contains some key points for insurers about how they might rectify their behaviour
The report also details how some customers may have lost out on their insurance claims, in some cases having to pay tens of thousands of pounds due to being underinsured. It also looks at the issue of misrepresentation, where someone gives their insurer the wrong information.
The report notes: ‘In our experience many people simply don’t understand the implications of not answering insurers’ questions correctly – until it’s too late, and they’re left to foot a large bill themselves. Equally, we sometimes find insurers haven’t considered the full range of remedies available to resolve these situations. And we sometimes find that businesses haven’t asked a clear question to begin with.’
Members may access the document by clicking here. https://www.financial-ombudsman.org.uk/data-insight/insight/insight-in-depth-underinsurance-misrepresentation-non-disclosure
BIBA members’ compliance and regulation queries should be directed to: email@example.com.
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