Partially upheld: poor claims handling, delays in claims settlement, poor communications, delayed payments complaint against AXA Insurance UK Plc
Financial Ombudsman decision DRN-6405585 of 2026-06-09T00:00:00+00:00. poor claims handling, delays in claims settlement, poor communications, delayed payments complaint against AXA Insurance UK Plc. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6405585 |
|---|---|
| Decision date | 2026-06-09T00:00:00+00:00 |
| Firm | AXA Insurance UK Plc |
| Product | Other regulated product |
| Claim type | poor claims handling, delays in claims settlement, poor communications, delayed payments |
| Outcome | Partially upheld |
| Remedy | AXA Insurance UK Plc must pay £350 in compensation plus £390.72 interest on delayed claim payment to the Director of Company A (assuming the £600 previously offered in November 2023 has been paid and the interest has not already been paid). |
Summary
Company A, in liquidation, complained about AXA Insurance's handling of two property damage claims made in summer 2021, which were not fully settled until November 2024 - over three years later. A made three complaints about delays, poor communications, and mishandling, and AXA admitted poor service, paying £900 in compensation with a further £350 offered. The ombudsman found the total compensation of £950 fair and reasonable for the inconvenience caused, rejected concerns about premium increases as they reflected normal risk assessment, and upheld the complaint in part by directing AXA to pay the outstanding £350 compensation plus £390.72 interest on a delayed payment.
The Ombudsman's reasoning
The ombudsman found AXA's service was admittedly poor with significant avoidable delays and poor communications over more than two years. However, the total compensation offered of £950 is fair and reasonable given that only inconvenience to the company (not distress) can be compensated, and the compensation is significant relative to the inconvenience caused. Premium increases were not adversely affected by the delays as AXA provided evidence that increases reflected normal risk assessment and other factors including inflation, consistent with treatment of other customers. The company's liquidation means future premium concerns are not relevant to this complaint.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| AXA Insurance UK Plc, all decisions | 3,714 | 34% |
| Other regulated product, all decisions | 52,408 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website