FCA Value Measures Reveal Widening Divide in Insurance Claims Acceptance Rates

Quick Summary

The latest FCA Value Measures analysis by Insurance DataLab reveals a stark performance gap in the UK insurance market. While motor insurance maintains a 99% claims acceptance rate, buildings insurance has plummeted to just 62% acceptance, signaling significant regulatory and consumer protection concerns for home insurers.

How Does the FCA Value Measures Data Impact Home Insurers?

Buildings insurance performance has reached a critical low, recording the lowest claims acceptance rate in the market at 62% for 2025. This decline from 63% in the previous year, coupled with a high 13% complaint rate, places the sector under intense scrutiny following recent supercomplaints and parliamentary inquiries. Here is how the data breaks down for the home sector:

• Buildings insurance: 62% acceptance rate; 13% of claims resulted in complaints.
• Combined cover: 71% acceptance rate; 12% complaint level.
• Contents only: Acceptance fell from 74% to 71%.

This data highlights a widening value divide that necessitates immediate benchmarking for brokers and insurers to ensure they meet Consumer Duty requirements.

What Trends Are Emerging in Motor and Pet Insurance?

Motor insurance stability remains a highlight of the report, with aggregate claims acceptance holding firm at 99% despite a 6.6% drop in retail premiums. However, the pet insurance market is showing signs of strain. While these products see high usage, acceptance rates for covered-for-life policies dropped to 93%. Key metrics include:

• Motor policies: 34.1 million in force, a 4.1% year-on-year increase.
• Pet frequency: Covered-for-life policies saw a 41% claims frequency.
• Travel trends: Single-trip acceptance improved to 83%, but annual worldwide cover slipped to 84%.

These FCA Value Measures suggest that while some sectors are thriving, others face a declining trust gap that could trigger further regulatory intervention.

FF NEWS TAKE:

The FCA Value Measures report is a wake-up call for the home insurance sector. A 62% acceptance rate is frankly indefensible in an era of Consumer Duty, and it moves the needle by providing the hard evidence regulators need to crack down on poor value products. While Insurance DataLab highlights that some providers perform well, the aggregate failure in buildings insurance suggests a systemic issue in how these products are underwritten or sold compared to the highly efficient motor market.