This comes as a direct response to a super complaint lodged by the consumer group Which?.

While regulator data indicates that 79% of consumers are satisfied with how their claims are handled, the FCA acknowledges that 30% of customers still feel they lack sufficient information to accurately judge the quality of different policies.

Over the coming year, the regulator intends to intensify its focus on claims handling by reviewing firm-level customer service and the oversight of third-party administrators. Simultaneously, the FCA will analyse sales methodologies to ensure consumers better understand the scope of their coverage. The regulator says its aim is to work alongside firms, trade bodies, and consumer groups to guarantee that individuals are equipped with the right information at the point of sale.

The regulator has already taken some action in instances where concerns have arisen. Since reviewing the sector in July, the FCA has opened two enforcement cases, launched three independent reviews into internal controls, and forced three senior managers to rectify issues and consider consumer redress. In one instance, a firm has been barred from conducting business until specific problems are resolved.

Graeme Reynolds, director of competition and interim director of insurance said: “We welcome Which? shining a light on issues we identified in home and travel insurance.

“We’ve set out more detail on the action we’ve already taken to fix problems, and we’re expanding our existing workplan to improve the claims process and consumer understanding of their cover.

“We’ll be monitoring consumer outcomes and will continue to hold firms and their senior leaders to account for making improvements, to help build trust and make sure people get fair value insurance.”