FCA find mis-selling in insurance

FCA find mis-selling in insurance
22 July 2016

The PPI mis-selling scandal has dogged the banking world for a long time now, and bothered everyone with a variety of spam messages and mithering claims companies.

You can of course, follow our guide and make your own PPI claims for free.

Now, it looks like we might have another mis-selling scandal, thanks to the insurance world.

The FCA think that insurance agents have potentially mis-sold policies to consumers, as well as falsifying documents, faking signatures, and sold products to people that will never, ever pay out.

The Financial Conduct Authority has been looking into all this, and said that their study of 15 insurance firms and the agents found widespread examples of poor practice.

They've also found companies that have failed to discipline an agent after they'd spotted their mis-selling deeds, and their falsification of customer documentation.

Other discoveries showed agents selling travel insurance to people with medical conditions, which aren't covered by the policy they ended up with.

As such, the FCA have given the insurance world a chance to sort themselves out, and ordered 'Section 166 reviews' on two companies, which means tha they'll have to pay for an independent firm to come in and review the way they do things.

Another two companies have been told to stop all sales activities. Sadly the FCA haven't named anyone in all this.

"General insurance is a large and important sector and we are concerned about the potential for customer detriment arising from the lack of oversight of appointed representatives," Jonathan Davidson, FCA director of supervision, said in a statement.

"All principal firms need to consider these findings and look again at their practices."

We wouldn't be surprised if there's compensation coming the way of people who have been mis-sold, in yet another headache for the UK's financial sector.

TOPICS:   Insurance

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