The 2025 FCA Value Measures reveal a market moving in different directions. While some major product lines recorded improvements in claims acceptance rates, the figures also point to persistent weaknesses in customer outcomes – particularly across home insurance.
Motor remained the largest product line in the dataset, with more than 34.1 million policies in force during 2025. This is an increase of 4.1% compared to the previous year, although retail premiums written fell by 6.6% amidst softening rates.
Claims acceptance rates remained steady at 99% at an aggregate market level, although some providers did see acceptance rates drop to 65-70%.
Meanwhile, the proportion of claims resulting in a complaint fell to 6%, down from 7% in 2024.
Home claims remain the pressure point
Despite this continued strong performance from the motor insurance market, home insurance presents a more challenging picture, and it is clear to see why the market has drawn attention from the House of Lords Financial Services and Regulation Committee of late, as well as a Which? supercomplaint last year.
Buildings insurance recorded the lowest claims acceptance rate of any product line in 2025 at 62%, down from 63% in 2024. Combined buildings and contents cover remained at 71%, while the acceptance rate for contents insurance fell from 74% to 71%.
Complaint levels were also among the highest in the market.
Some 13% of buildings insurance claims and 12% of combined buildings and contents claims resulted in a complaint in 2025, while for contents insurance, the rate increased from 6% to 7%.
For a large and widely held part of the market, the combination of low acceptance rates and high complaint levels is difficult to overlook, but not all providers are the same with some home insurers reporting acceptance rates on a par with the motor insurance market.
Travel insurance presents a mixed picture
When it comes to travel insurance, claims acceptance rates improved for standalone single-trip insurance, rising from 80% to 83%. However, acceptance rates remained unchanged at 86% for annual European cover and slipped from 85% to 84% for annual worldwide policies.
Complaints also increased across annual travel products. Some 6% of claims resulted in a complaint for both annual European and annual worldwide cover in 2025, up from 4% and 5% respectively a year earlier. Standalone single-trip insurance performed slightly better on complaints, although its rate still increased from 4% to 5%.
Pet insurance remains frequently used
Pet insurance continued to record some of the highest claims frequencies in the market. Covered-for-life policies recorded a claims frequency of 41%, behind only healthcare cash plans. Maximum-benefit and time-limited pet insurance both recorded a frequency of 26%.
Meanwhile, claims acceptance rates declined for two of the three pet insurance categories. It fell from 95% to 93% for covered-for-life policies and from 93% to 91% for maximum-benefit cover.
Acceptance rates for time-limited pet insurance remained unchanged at 88%, while only 2% of claims resulted in a complaints. Complaints also remained lower across the other pet products, at 1% for covered-for-life cover and 2% for maximum-benefit policies.
The figures suggest pet insurance continues to be used comparatively frequently, although the decline in acceptance rates across parts of the market will merit attention.
Customer value requires a wider view
The 2025 figures underline why no single metric provides a complete picture of customer value. Claims frequency needs to be considered alongside acceptance rates, complaints and the number of customers affected.
Motor continues to deliver consistently high claims acceptance and falling complaint levels. Pet insurance also remains one of the most frequently used forms of cover, although acceptance rates have weakened across some products.
Travel insurance presents a more mixed picture, while home insurance combines some of the market’s lowest acceptance rates with its highest complaint levels. These trends are likely to keep claims outcomes across the home market firmly in focus, especially while we await the findings from the House of Lords.
For insurers and brokers, detailed benchmarking is essential to understand whether products are keeping pace with the market and delivering credible customer outcomes.
Insurance DataLab brings the FCA Value Measures together on a company-by-company basis alongside wider intelligence on complaints, customer experience and underwriting performance, helping firms to compare results between insurers and across product lines.
Contact Dan at dan@insurancedatalab.com or request a free demo here to find out more.