Consumer complaints about UK personal lines claims have prompted a strategic review of the sector by the Financial Conduct Authority (FCA).

Concerns about delays, poor customer service and unfairly declined claims must be urgently addressed, according to CEO Martin Wheatley, who announced the move at the British Insurance Brokers’ Association (BIBA) conference.

“Very often, we are talking about enormously stressful periods in people’s lives,” he said. “Touchstone moments. Someone taken seriously ill on a family holiday, a house burgled, a property flooded.

“It would be very difficult, if not impossible, to defend any company if it was found to be aggravating these experiences by dragging its heels − or trying to wriggle out of its responsibility to pay legitimate claims.”

The review will focus on household and travel claims, and obtain evidence directly from claimants.

Mr Wheatley wants companies to ask whether their claims culture is “fit for purpose in the modern world”.

“We need to quickly determine – for the sake of the insurance industry as well as its customers – whether there is a case to answer.”

The review’s findings and recommendations will be reported by the end of the year.

BIBA, the Association of British Insurers (ABI) and the Chartered Institute of Loss Adjusters have set up a claims working group to engage with the FCA and improve customers’ experience and understanding of claims.

“The claims experience is the shop window by which the industry is often judged and insurers are committed to ensuring customers get the service they need when they most need it,” ABI Director of General Insurance Nick Starling said.