Martin Lewis has welcomed consumer champion Which?’s super-complaint to the Financial Conduct Authority (FCA), citing widespread failings in home and travel insurance.
The complaint follows more than a year of investigation into insurers’ claims-handling practices, policy terms and conditions, and customer experiences.
Which? said that systemic problems exist in how policies are sold, explained and administered, leaving many customers without the protection they expected.
Mr Lewis, chair of MoneySavingExpert.com and the Money & Mental Health Policy Institute, warned: “Policies are there to protect you against yet unknown future events, so even if people were able to wade through the copious terms and conditions, they don’t know what risk to check for, as they don’t know what may befall them.
“That leaves an imbalance of power between firms and consumers, so it’s crucial there’s a principle of fair dealing, alongside strong monitoring and proper enforcement by the regulator, so people get the protection they would legitimately expect.”
His warning comes amid evidence from Which? showing low claims acceptance rates and poor customer outcomes. The FCA has acknowledged “substandard” service in both the home and travel insurance sectors but has yet to take decisive action.
Which? highlighted several case studies demonstrating these failures from major insurance firms.
In June 2023, Yvette Greenley, from Northampton, was unable to go on a week-long holiday to Egypt after her flight was turned around due to a technical fault.
Martin Lewis has welcomed consumer champion Which?’s super-complaint to the Financial Conduct Authority
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Her insurer, Axa Partners, initially refused her claim, stating the holiday had technically taken place.
Which? raised the case with the insurer, which subsequently reversed its decision, reimbursing Ms Greenley around £140 in expenses and offering compensation for the delays.
Meanwhile, LV General Insurance customers Kaja and Dean Cordwell have had three complaints lodged with the Financial Ombudsman Service (FOS) following a fire that badly damaged their home in January 2024.
LVGI delayed arranging repairs, leading the Cordwells to appoint a loss assessor.
The insurer offered £57,000 towards renovation work valued at £80,000, creating disputes over adequate compensation.
The FCA noted in July 2025 that claims for storm damage were frequently rejected, inappropriate cash settlements were offered, and oversight by insurers was often insufficient.
Sam Richardson, deputy editor of Which? Money, said: “When it comes to making a claim on your insurance, it’s sadly all too common to get caught out by the small print.”
Which? survey data shows that 38 per cent of claimants whose claim had been fully or partially accepted were offered a cash settlement, 41 per cent were offered direct repair or replacement, and 19 per cent received a combination.
The consumer group warned that inappropriate cash settlements can leave customers out of pocket, particularly when the full cost of repairs or replacements is unknown at the time of the payout.
Which? research also revealed widespread confusion over accidental damage cover.
Among 78 home insurance policies examined from 35 providers, only 28 per cent of buildings policies and 27 per cent of contents policies include accident protection as standard.
Accidental damage accounted for 19 per cent of claims in Which?’s survey of 2,804 claimants conducted in June and July 2025.
Last October, a survey of 4,000 insurance buyers found that 31 per cent believed their policy would cover any incident not their fault, and 29 per cent assumed contents coverage included accidental damage.
Rocio Concha, director of policy and advocacy at Which?, said: “Which? using its legal powers to submit a super-complaint is a major intervention – but we believe it is necessary as serious failings in home and travel insurance have been tolerated for too long by the insurance industry and its regulator.”
She added that the evidence was overwhelming and called for urgent FCA intervention.
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Customers are advised to examine policy documentation carefully or contact insurers directly to ensure appropriate protection levels
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GETTYThe Association of British Insurers (ABI) said insurers take their responsibility seriously and highlighted that over £1.7billion was paid for more than 300,000 home insurance claims in the first half of 2025.
Travel insurers paid £472million for over 500,000 claims last year.
Mr Lewis welcomed the Which? super-complaint and said it should ensure that consumer problems are thoroughly investigated and appropriate regulatory measures implemented.
Which? advised consumers to check policy wording carefully, declare vulnerabilities, formally complain to insurers if necessary, and escalate unresolved complaints to the Financial Ombudsman Service.
More than half of complaints made in the second half of 2024 were upheld by insurers.