Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department are taking to (a) ensure the compliance of (i) home and (ii) travel insurance firms with their legal obligations and (b) improve consumer protections related to (A) home and (B) travel insurance.

The government recognises the important role of home and travel insurance products in building the financial resilience of consumers and protecting them when things go wrong.

The Treasury is responsible for setting the overall legal framework for regulating Financial Services. The Financial Conduct Authority (FCA), is an independent body responsible for regulating and supervising the financial services industry, including insurance firms. The Financial Ombudsman Service (FOS) investigates individual complaints against firms.

The FCA introduced their Consumer Duty in 2023, which has had a positive impact in shifting firms towards an approach that is more focused on outcomes for consumers. The FCA’s 2025 review of home and travel claims handling identified examples of good practice and areas for future improvement which the regulator is taking forward.

Last year’s super-complaint by Which? reflected ongoing consumer concerns regarding home and travel insurance. The government takes these concerns seriously and will be responding, alongside the FCA, to the Financial Services Regulation Committee’s inquiry into the regulation of the consumer insurance market.