The FCA’s latest blog examining whether the claims management market is “working” delivers a clear and timely message. While claims management companies continue to play an important role in helping consumers pursue redress, too many are still not consistently delivering fair or transparent outcomes. The regulator is signalling that the market must do more to meet rising expectations around customer treatment and accountability.
Its concerns span the entire customer experience. The FCA points to issues such as inconsistent outcomes for customers, marketing practices that may be misleading or overly aggressive, and situations where individuals are signed up to services without fully informed consent. It also raises questions around fee structures that can reduce the value of compensation, as well as broader weaknesses across the end-to-end journey from initial engagement through to resolution.
At its heart, the review is focused on a single, critical question: can firms clearly demonstrate that they are acting in the best interests of their customers at every stage?
The shift from process to proof
What stands out in the FCA’s direction is the move away from simply having processes in place, to being able to evidence good outcomes.
The regulator is examining:
- Whether consumers receive fair value
- How financial incentives influence behaviour
- Whether the full journey from lead generation to resolution, delivers consistent outcomes
This aligns directly with Consumer Duty expectations. It’s no longer enough to resolve complaints firms must show they:
- Handled them fairly and consistently
- Communicated clearly at every stage
- Learned from issues to prevent repeat harm
For many organisations, this is where challenges begin.
Where complaints management breaks down
In practice, the issues the FCA highlights often stem from gaps in day-to-day operations rather than intent. Many organisations rely on multiple systems that don’t communicate effectively, which creates fragmented records and limits visibility over the full lifecycle of a complaint. Without a single, reliable view, it becomes difficult to track progress, understand context, or demonstrate consistent handling.
This lack of cohesion can also lead to variation in how complaints are managed across teams. Different processes, interpretations, or levels of experience can result in inconsistent outcomes for customers, something the FCA is increasingly focused on addressing. At the same time, limited access to meaningful data makes it harder to identify underlying causes or emerging trends, leaving firms in a reactive position rather than a proactive one.
As a result, when it comes to regulatory reporting, organisations often struggle to produce clear, accurate, and timely insights. This makes it harder to evidence fairness, consistency, and control precisely the areas now under greater scrutiny.
The FCA’s review should not be viewed purely as a regulatory challenge, but as a clear opportunity for firms to rethink how they approach customer interactions. It highlights the growing importance of not just resolving complaints, but managing them in a way that demonstrates fairness, transparency and consistency throughout the entire customer journey.
Organisations that invest in stronger, more structured complaints management processes will be far better positioned to meet these expectations. With the right approach, firms can clearly evidence fair value and consistent outcomes, respond with confidence to regulatory scrutiny, and build stronger, longer-lasting relationships with their customers.
In today’s environment, complaints handling has moved beyond being a back-office function. It has become a key indicator of how effectively a business serves its customers, shaping both regulatory perception and overall trust in the brand.
How Worksmart helps close the gap
Worksmart’s complaints management solution, Caresmart, is designed to address these challenges head-on helping firms move from basic complaint handling to outcomes-led management.
A few key capabilities stand out:
- End-to-end case management
Caresmart captures, tracks and manages complaints across all channels, creating a single, auditable record from first contact through to resolution. - Built-in consistency and control
Configurable workflows and SLAs ensure every complaint follows a structured, compliant process, reducing variation in how customers are treated. - Real-time insight and reporting
With dashboards and full MI suites, firms can monitor performance, identify risks early, and meet FCA reporting requirements with confidence. - Root cause analysis and continuous improvement
Detailed analytics help organisations understand why complaints occur turning feedback into actionable change.
Importantly, this isn’t just about efficiency. It’s about giving firms the ability to prove compliance and demonstrate good customer outcomes.
The claims management market isn’t broken, but it is being reshaped.
The FCA is raising the bar on transparency, accountability and outcomes. Firms that rely on fragmented processes will struggle to keep up. Those that embrace robust, technology-driven complaints management will not only meet expectations but set themselves apart.
At Worksmart, we see this shift clearly: better complaints handling isn’t just compliance—it’s a business advantage.