Why is appointing a broker so beneficial in a ‘broken’ insurance industry?
- marketing66905
- Oct 30
- 2 min read
Consumer advocacy group Which? has launched a super-complaint against the home and travel insurance sectors, calling them "broken" due to serious and widespread failings.
It argues that many consumers find making insurance claims more distressing than the original incident and some insurers unfairly deny claims due to technicalities or poor claim handling.
For example:
A denied travel claim because a flight technically “started” before being turned back.
A storm damage claim rejected due to wind speed being 2mph below the insurer’s storm threshold.
Which? Reports that:
99% of car insurance claims are upheld.
But only 63% of buildings insurance and 80% of travel insurance claims are accepted.
It accuses both insurers and the FCA (regulator) of failing to protect consumers adequately.
The super-complaint demands a formal response within 90 days and is supported by other consumer groups. Meanwhile, insurers and the FCA say they are working to improve standards.
Why This Highlights the Importance and Benefit of Appointing a Broker
This article highlights how confusing, frustrating, and even unfair dealing with insurers can be for everyday consumers. Here's how appointing a broker helps avoid many of these issues:
Brokers Understand the Fine Print
Many denied claims stem from misunderstandings about policy coverage. A broker helps you choose a policy that actually covers what you need, avoiding nasty surprises when you claim.
Brokers Advocate for You
Unlike insurers, brokers work for you, not the insurance company. If a claim is unfairly rejected or delayed, brokers will negotiate and escalate on your behalf, reducing the stress on your end.
Brokers Navigate Complex Claims
The article highlights poor handling of claims, often outsourced or dismissed on technicalities. Brokers are experienced in navigating these situations, helping ensure faster, fairer outcomes.
Better Protection Through Expertise
Which? found major inconsistencies in how insurers interpret things, such as storm definitions. Brokers know how different insurers operate and can recommend providers with stronger reputations and fairer practices.
Peace of Mind
Insurance is meant to reduce stress, not add to it. A broker reduces risk, handles the legwork, and provides ongoing support, especially during emotional or high-stress times.
Why It Matters
The Which? super-complaint shows that too many consumers are being let down by unclear policies, poor service, and unfair claim decisions. Appointing a broker protects you from these pitfalls, ensures you get the right cover, and provides an expert advocate when you need them most.
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