Lords warn home and travel insurance is being 'hollowed out' while price-led customers see their claims declined

Baroness Noakes, who chairs the House of Lords Financial Services Regulation Committee, said many policies are now chosen on price alone. The committee says the problems are well known to industry and the Financial Conduct Authority (FCA), yet significant progress has not been made. It wants the FCA to publish a roadmap with clear timescales. The inquiry launched in May.

Customers routinely misunderstand storm damage cover and that wear and tear may be excluded.

'Insurance products are inherently complex', the report says, 'their value often unclear until a claim'.

The committee also flagged growing worries about shoppers using AI to research insurance cover.