Mobile Phones Updated:
An investigation by the Financial Conduct Authority (FCA) has uncovered a series of issues in the way claims are handled by mobile phone insurance companies.
The practices of nine insurers were studied by the regulator, with aspects such as the design of policies, clarity of terms and conditions and the handling of claims pulled under the microscope.
Results of the study published today, however, have flagged up a number of failings, including instances where customers were found to have been treated unfairly.
The FCA said it had liaised with the insurers that had participated in the review and confirmed steps are being taken to improve service and practices.
The study of the mobile phone insurance sector is understood to be part of an ongoing review by the FCA into all regulated financial companies and the supervision of those that are not supervised by the Prudential Regulation Authority (PRA).
The FCA's director of supervision, Clive Adamson, said: "With mobile phones now essential to our lives, and mobile phone insurance often many young people's first foray into insurance, it is important that insurance policies provide the level of protection that they promise, and claims processes are fair.
"What this review shows is that sometimes there is a gap between what the customer thinks they are getting, and what they are really getting. Closing this gap will lead to greater trust and confidence," he stated.
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