What does the FCA say?
Mark Steward, executive director of enforcement and market oversight, said: “Fair, effective and prompt settlement of claims is a fundamental requirement of mobile phone insurance, and customers should expect that any claim they make, or any subsequent complaint they lodge, will be dealt with fairly.
“Insurers must put in place adequate measures to make sure that claims and complaints are handled fairly, especially where those functions are outsourced.”
What does Liberty say?
A Liberty spokesperson said: “This fine from the FCA relates to activity undertaken by LMIE (our Company market operation), under an arrangement which began in 2010, before the formation of Liberty Specialty Markets. Under this arrangement, a third party administered mobile phone insurance products on LMIE’s behalf.
“Several years ago certain issues came to light around some unfair outcomes for a very small proportion of customers (less than 1%). These issues have been addressed and LMIE has worked with the third party to ensure that redress was paid to any customer who might have been affected. LMIE no longer sells mobile phone insurance to new customers.
“At Liberty Specialty Markets, we welcomed the FCA’s focus on coverholder oversight, and responded by setting up a new, best in class Conduct function. This ensures that Liberty’s ethos of doing the right thing and putting the customer at the heart of everything we do, is put into practice effectively across all of our product lines and coverholder arrangements.”