FCA warns insurers against undervaluation

FCA has warned insurance firms that they must take care not to undervalue items, specifically but not only cars, when settling insurance claims.  It has become aware that claims staff are often offering a lower price than fair market value when customers’ cars are written off, and increase it only if a customer complains. FCA says it is watching firms’ behaviour closely to check they are not looking to reduce costs in the cost of living crisis in a way that is harmful to consumers.

Emma Radmore