Direct Line ordered to reassess five years of claims after admitting it underpaid car and van customers
Direct Line must review losses where vehicles were written off between September 2017 and mid-August 2022
Insurance giant Direct Line has been ordered to reassess five years of claims after admitting it had underpaid some car and van customers.
The FTSE 250 company received a notice from the Financial Conduct Authority (FCA) telling it to review losses where vehicles were written off between September 2017 and mid-August 2022 to identify someone who got an unfair settlement.
Direct Line said it expected it would only affect “a minority of customers.” “We will contact affected individuals to apologize and provide appropriate compensation, including interest.”
The FCA said in December it had found evidence that auto insurance customers whose cars had been written off following an accident had received payouts that were less than fair market value.
Direct Line endured a series of profit warnings as soaring inflation drove up costs, leading to the departure of CEO Penny James in January.