Some of Britain’s leading motor insurers knowingly offer owners of written-off or stolen cars initial settlements below their market value, only to increase the payout if the customer complains, a study by the City regulator suggests.
Disputed offers can then be raised even when no additional information is provided, creating what the Financial Conduct Authority called “systematically different outcomes for different customers, largely based on their propensity to challenge and/or complain”.
The watchdog said that vulnerable customers were at greater risk of harm from companies which make low initial offers in anticipation of a negotiation, “as they may have less financial knowledge or experience of dealing with financial firms to challenge their insurer’s initial settlement offer”.
The findings follow an investigation into claims-handling at 12
