Insurance Companies: Regulation
The question
To ask the Chancellor of the Exchequer, whether she has made an assessment of the adequacy of the Financial Conduct Authority’s regulatory framework in relation to insurance companies’ use of loss adjusters; and whether she plans to regulate the conduct of loss adjusters.
Answered by Lucy Rigby
Whilst loss adjusters acting on behalf of insurers are not directly regulated by the Financial Conduct Authority (FCA), they are typically members of professional bodies such as the Chartered Institute of Loss Adjusters (CILA). CILA sets standards for ethical conduct, technical competence, and professional integrity through its Guide to Professional Conduct.
Insurers are ultimately responsible for ensuring that all aspects of their claims process meet the FCA’s regulatory standards. These include requirements to handle claims promptly and fairly, provide reasonable guidance to policyholders, and avoid unreasonable claim rejections. The FCA’s Consumer Duty also requires insurers to deliver good outcomes for customers throughout the claims journey.
At present, there are no plans to introduce additional regulation specifically targeting the conduct of loss adjusters. However, the FCA continues to monitor practices across the insurance sector and has robust powers to take action against regulated firms that fail to comply with its rules.
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