The FCA stressed that there is no need for customers to use a Claims Management Company to pursue compensation. The compensation payments follow a series of interventions by the FCA over recent years aimed at ensuring insurers value vehicles fairly when settling claims. In December 2022, the regulator warned firms not to undervalue cars or other insured items and set out expectations for fair claims handling. Cormac Bradley, direcot at financial services consultancy Broadstone, said: “Today’s announcement from the FCA will see hundreds of thousands of drivers receive compensation for historic insurance claims. Insurers need to be confident that they reflect the uncertainty appropriately in the customer’s favour to avoid under-compensation.