Claims delays and communication gaps continue to affect insurance customers
General Insurance Code Governance Committee
The General Insurance Code Governance Committee (GICGC) has found that claims handling remains the largest source of non-compliance across the industry, with delays and communication issues continuing to affect customers at critical moments.
Publishing its Annual Industry Data and Compliance Report (2024-25), the GICGC said claims handling accounted for the majority of reported breaches of the Code of Practice, with many breaches linked to delays in updates and decisions during the claims process.
Chair of the GICGC, Veronique Ingram, said these delays can have a real impact on customers dealing with loss or disruption.
“When customers make a claim, they are often dealing with stressful and uncertain circumstances,” Ms Ingram said.
“Delays in updates or decisions can add to that stress and make it harder for people recover and move on.”
The report also highlights gaps in insurers use of data to identify patterns of non-compliance.
Some insurers were unable to report how long customers were waiting when timeframes were exceeded, limiting their ability to identify recurring issues and address the underlying causes of delays.
Ms Ingram said understanding the causes of delays is essential for insurers fulfilling the promises they make to their customers in the Code of Practice.
“Good data helps insurers see where they are failing to meet their commitments and take action before they become widespread,” she said.
“Without that visibility, it is harder to address the root causes of issues that affect customers’ experiences.
“It is crucial that insurers have the data to learn from breaches – they cannot simply report breaches and dismiss them as human error, only to report them again the next year.”
The GICGC also noted that supporting customers experiencing vulnerability remains a key area of focus, with complaint trends indicating that some customers continue to face challenges when interacting with insurers.
While breaches relating to vulnerability declined, complaints in this area increased significantly, suggesting that improvements in processes are not always translating into better outcomes for customers.
Ms Ingram explained that the way insurers respond to customers in vulnerable circumstances can make a meaningful difference.
“For customers experiencing vulnerability or financial hardship, the quality of support they receive can have a significant impact on their overall experience,” she said.
“Clear communication, timely responses and appropriate support are essential in helping these customers navigate difficult situations.”
The GICGC said the report highlights areas of progress as well as opportunities for insurers to strengthen their systems, improve oversight and deliver more consistent outcomes for customers.
Read the full report: Annual Industry Data and Compliance Report 2024–25
About us:
The General Insurance Code Governance Committee is an independent body that monitors and enforces insurers’ compliance with the Code of Practice.
Contact details: