Claims delays drive policyholder switching at renewal, as new research reveals the service failures most likely to cost insurers customers - and brokers a book.
One in four UK policyholders has switched insurer after a poor claims experience. Nearly a third plan to do the same at their next renewal. The figures come from a survey of 1,025 adults conducted by independent research agency Viewsbank.
Car insurance accounted for the highest proportion of claims at 49%, followed by home and property at 26%. Of those who rated their experience poorly, 11% described it as poor or very poor, while a quarter said it was average.
Processing delays were the most frequently cited cause of dissatisfaction, identified by 39% of those who had a bad experience. Delays in settling claims troubled a further 29%. Another 23% said chatbots and self-service tools caused frustration rather than helping resolve their query.
The Financial Conduct Authority (FCA) has said it expects customers to be at the centre of the claims process and unreasonable delays must be avoided. In July 2025, it confirmed direct action against firms after finding evidence of poor claims handling, including high complaint volumes and settlement delays. Financial Ombudsman Service (FOS) data recorded a nearly 12% rise in motor complaints in the first quarter of 2026, keeping motor the most complained-about product line in the UK.
Claims quality has become a measurable placement variable. Home insurance acceptance rates range from 45% to 85% across providers, according to Insurance DataLab's analysis of FCA value measures data. That 40-point spread gives brokers concrete grounds to interrogate insurer selection ahead of renewal.
The FCA has said firms that differentiate through claims experience will be better placed to retain customers as premium competition eases. That frames claims performance as a retention lever rather than a compliance exercise.
Which? has raised sustained concerns about claims handling for vulnerable customers and says the regulator must hold firms to existing standards more assertively. Nearly half of all claimants surveyed it experienced at least one problem during their claim, the consumer advocacy group reported in July 2024. For personal lines brokers, insurer-level claims performance is increasingly where the renewal conversation starts.
