Insurers

Yes. Insurers selling policies to UK consumers are regulated by the Financial Conduct Authority, and many are also regulated by the Prudential Regulation Authority. That means they have to meet rules on how they treat customers, how they handle claims and how they explain the terms of a policy. If something goes wrong, you can complain to the firm first and then take the complaint to the Financial Ombudsman Service.

The Financial Services Compensation Scheme covers insurance policies. For most types of cover it pays 100% of a valid claim, and for some compulsory insurances it pays 100% too. This protection applies to policies with insurers that have failed, not to the general performance of a policy. You can check the scheme's rules for the specific type of insurance you hold.

An insurer is the company that takes on your risk and pays claims. A broker acts as an intermediary between you and insurers, helping you work out what cover you need and recommending a policy. Brokers are usually paid by commission from the insurer, so it is worth asking how yours is paid before you buy.

Insurers can refuse cover, charge more or apply conditions if they believe you are at higher risk of claiming. They can also treat a person with a disability differently if the disability genuinely increases the risk, the assessment is based on reliable information and the treatment is reasonable. It is against the law to refuse cover or offer worse terms simply because you are disabled.

Complain to the insurer first and give it a chance to put things right. If you are unhappy with the response, or eight weeks pass without a final answer, you can take the complaint to the Financial Ombudsman Service, which is free to use. The ombudsman looks at what the firm did and what the rules required at the time.

They can. Insurers use risk data to work out how likely a claim is, and the higher the risk, the higher the premium tends to be. That can mean higher prices, exclusions or a medical exam before cover. Once a policy is in place, premiums generally cannot be increased because of a new diagnosis, though the terms of each policy vary.