Chapter 7 of the Insurance: Conduct of Business sourcebook (ICOB) contains our rules and guidance on
claims handling and sets out a firm’s responsibilities when handling claims. ICOB 7 places responsibility
on the firm for ensuring that:
claims are handled fairly;
claims are settled promptly;
customers are provided with information on the claims handling process, and with an explanation of
why a claim is rejected or not settled in full, where relevant; and
insurance intermediaries disclose and manage any conflicts of interest that may exist.
Who should read this?
This factsheet is aimed primarily at general insurers1 who are responsible for the claims-handling process
even where they outsource claims related activities. This outsourcing includes cases where a firm gives an
intermediary authority to handle claims on its behalf. However, the rules in ICOB 7 also apply to insurance
intermediaries where the firm carries out an activity on behalf of a customer in connection with a claim.
What do we set out in this factsheet?
We carried out research to assess the extent to which firms handle claims fairly and settle them promptly.
We also reviewed firms’ use of management information and their control of outsourced service
providers. 34 general insurers participated in the research.
We set out some points arising from our research findings which firms may wish to consider in the
context of their approach to claims handling. These can be summarised under two main headings:
liaison with customers; and
systems and controls, including fraud prevention and outsourcing.
Financial Services Authority
Page ◆ 1
General insurance claims handling:
Factsheet for general insurers and
general insurance intermediaries
References to insurers apply equally to managing agents
Page ◆ 2
Liaison with customers
The overriding requirement in our rules is that an insurer must handle claims fairly and promptly and
should have appropriate systems and controls to ensure it can do this. An insurer must: