Mis-selling risk at one in three insurance firms

ONE in three insurance firms have been found to be at risk of mis-selling policies to customers, the City watchdog has found.

The Financial Conduct Authority discovered evidence of serious failings and a disturbing lack of control over their salesmen. Customers were found to have been flogged products they did not need or that had no chance of paying out if they claimed. One firm was caught falsifying customer documents.

The quality of training on offer at firms ‘varied widely’, with some putting more emphasis on boosting sales rather than protecting customers. The review focused on ‘appointed representative’ firms, which act as sales people for insurance firms. Jonathan Davidson, director of retail supervision at the FCA, says: ‘All principal firms need to look again at their practices.’