I was stunned when my insurer asked to speak to my dead husband after I told them he died – it was traumatic

AN insurance customer has shared how her insurer asked to speak to her husband when she rang about their joint policy, even after she had told them he died.

The insurer asked Tara*, who had recently been made a widow, where her husband was when she called about their joint home insurance policy, despite knowing he had died.

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Tara’s home had been burgled shortly after her husband’s death and sentimental items had been stolen – but it hadn’t recorded that he had passed away properly.

It comes as new research by consumer champion Which? has found almost half of insurance customers have faced difficulty making a claim or felt sensitive issues were handled poorly.

Its analysis found 48% of people who have recently made a motor, home, travel or pet insurance claim experienced a problem while making their claim.

Major problems included having to repeatedly chase insurers for information about their case, and insurers not responding appropriately when people were struggling with the incident that caused their claim.

Which? said the worst cases were where insurers brought in third party firms to help manage cases.

The research also found a third of customers felt claiming on their insurance policy had had a negative impact on their stress levels.

And over a quarter said they felt their insurer’s actions while making a claim negatively impacted their time available to do other things. 

Rocio Concha, director of policy and advocacy at Which?, said: “This research paints a shocking picture of insurers’ failure to handle customers’ claims in a timely, empathetic way.

“And, it’s particularly concerning to see how people in vulnerable circumstances due to the event that led to their claim are being failed by their insurers. 

“At a time when many consumers face soaring premiums, it’s clear they’re being ripped off – either by abysmal claims handling that doesn’t match up to the price they’re paying, or by unjustifiably high premiums, especially for those who can’t afford to pay for a year’s cover in one go.”

Insurers are regulated by the City watchdog, the Financial Conduct Authority (FCA), and are therefore bound by new “Consumer Duty” rules which came into effect last year.

These rules say financial firms must treat customers fairly and deliver good outcomes.

Ms Concha added: “The rules for insurers are clear, but the insurance rip-off will not end unless the regulator takes meaningful action against firms that consistently fall short.”

Earlier this year, The Sun revealed how the UK is facing a customer services crisis.

The Financial Ombudsman Service, which resolves disputes between financial firms and customers, received 95,349 complaints in the second half of last year — a 20 per cent increase on the same period in 2022.

How to complain about a financial firm

If you have a complaint about a financial firm, contact the company first and give them the chance to resolve the issue directly.

If you call and are on hold for a long time, try other avenues, such as its social media or the live chat function on its website. You can keep evidence you tried these routes.

Keep a note of names, dates and times of any correspondence you have with the company and write a brief summary of your issue down at the time.

If the company makes any promises over the phone, follow up in writing as soon as possible confirming what was said.

If the company does not resolve your issue, check to see if there is an ombudsman you can appeal to for help.

For complaints about financial companies, contact the Financial Ombudsman Service (FOS).

You must complain to the company first and if they don’t respond within eight weeks or you’re not happy with the outcome, then you can escalate it to the FOS.