House of Lords Committee Calls For Evidence & Comments on Insurance

The House of Lords Financial Services Regulation Committee invites submissions to its new inquiry on the regulation of the UK’s consumer insurance market. There is an opportunity for anyone in the insurance sector to offer comments;

The inquiry is focused on how the consumer market for home and travel insurance is regulated. This covers the regulation of insurance distribution (how insurance is sold to consumers, both directly and through intermediaries) and insurance claims handling, as well as the enforcement of these regulations and the resolution of disputes between insurance firms and consumers.

The committee is seeking evidence on the following questions:

1. What are the key areas of concern for consumers in the regulation of home and travel insurance?
   1. Are there any other types of insurance where consumers are facing similar challenges?
2. What impact has the Financial Conduct Authority’s (FCA) Consumer Duty had on the consumer insurance market?
3. Does the current regulation of insurance distribution and sales ensure that consumers purchase appropriate home and travel insurance? Are there any changes that should be made to the regulatory requirements?
   1. How well do consumers understand the terms of insurance cover that they purchase, and how could this be improved?
   2. Do price comparison websites help consumers purchase appropriate insurance?
4. Are there any groups of consumers that face challenges in accessing suitable insurance? Do the current regulations effectively protect these groups of consumers?
5. Are consumers’ insurance claims handled fairly?
   1. Do the current regulatory requirements provide sufficient protection for consumers when making insurance claims?
   2. What impact does the outsourcing of claims handling have on consumers’ insurance claims? Do insurance firms have appropriate oversight of outsourced claims handlers?
   3. Do cash settlements deliver good outcomes for consumers?
6. How effectively are the current regulatory requirements enforced by the FCA?
7. What is the role of the Financial Ombudsman Service (FOS) in protecting consumers in the insurance market, and how effectively does it resolve disputes?
8. Are there any gaps in the current legislation or regulatory framework for the consumer insurance market?
   1. Is the current regulatory regime well adapted to respond to the adoption of AI in the insurance industry?

Commenting on the launch of the new inquiry, The Baroness Noakes DBE, Chairman of the Financial Services Regulation Committee, said:

“We have launched this inquiry to find out if the insurance market is working for the many people who buy home and travel insurance. We want to find out whether the current regulations are effective, whether they are properly enforced, and whether there is anything that the regulators and Government need to do differently. We welcome evidence and views from anyone with expertise or interest in this area.”

The deadline for the submission of written evidence is 5pm on Friday 26 June 2026.

Read the call for evidence to find out how to submit evidence.