How long should an insurance company take to settle a claim?

There is no single statutory number of days that applies to every insurance claim. The FCA requires insurers to handle claims promptly and fairly, but what counts as prompt depends on the type of claim, the evidence needed, and any genuine investigation.

Can the Financial Ombudsman Service award compensation for delays?

Yes, where the Financial Ombudsman Service considers that an insurer handled a claim unreasonably and that the delay caused distress or inconvenience, they can tell the insurer to pay compensation. However, these awards are usually modest and depend on the facts at hand.

Why Is My Insurance Claim Taking So Long?

smarterclaims team

·Last updated: 19 October 2026·13 min read

You send the claim form, provide the documents you were asked for, and expect the insurer to tell you what happens next. The problem is that a claim can sit between departments, repairers, loss adjusters, and third parties without anyone clearly owning the next step.

A delayed insurance claim doesn't necessarily mean your claim has been refused. But delay matters because it can leave you out of pocket for repairs, replacement items, temporary accommodation, or other costs while the insurer continues their investigation.

Most problems with an insurance claim become harder to manage when the insurer doesn't say what they are waiting for, so the first job is to separate genuine evidence requests from avoidable drift.

Key Takeaways

An insurance claim may take longer because of missing documents, loss adjuster availability, complex investigations, third party delays, or repeated requests that do not move the claim forward.
To prove a claim, you generally need to show that the insured event happened and what it was worth, but any reasonable form of proof can help.
The FCA's claims handling rules require insurers to handle claims promptly and fairly, not unreasonably reject claims, and settle promptly where the policy responds.
If the delay continues, the usual route is to chase in writing, raise a formal complaint, and wait for the insurer's final response or the end of the complaint period.
SmarterClaims can help you identify the issues causing unnecessary delay, review relevant correspondence, and prepare a structured letter challenging how your claim is being handled.

Why Is Insurance Taking So Long to Process a Claim?

Insurance claims usually slow down for one of two reasons:

Either the insurer is waiting for something they reasonably need.

The claim has become stuck inside the claims process.

If the insurer needs relevant evidence, you can focus on supplying it. If they already have what they need, repeated silence or duplicated requests may justify a written chase or a formal complaint.

While there is no fixed deadline for an insurer to decide every claim, FCA rules require claims to be handled promptly and fairly. So, if you make a formal complaint about the delay, the insurer then has 8 weeks to issue their final response. If they fail to do so, or you are still not satisfied with their statement, you may then be able to take the complaint to the Financial Ombudsman Service.

Additionally, the insurer can see their internal claim notes, supplier updates, and outstanding tasks, while you may only receive a short update saying the claim is still under review.

Missing Documents and Information

A common reason for delay is missing paperwork. The insurer may be waiting for receipts, photographs, repair invoices, medical evidence, bank statements, or proof that the loss happened in the way described.

The test is proof of a claim. To succeed, you have to show that the claim happened and what it was worth. The policy wording may ask for particular documents, but any reasonable form of proof can be enough. For instance, a bank or credit card statement can stand in for a lost receipt.

The policy schedule can also matter where the delay concerns the value of the claim, single item limits, sums insured, or the excess that applies to this policy. If the insurer says the value is unclear, ask whether they are waiting for proof of value or checking a limit in the policy schedule.

So, if the insurer says your documentation is incomplete, ask them to confirm in writing:

The missing item: Ask them to name the specific document, photograph, report, or statement they say they still need.
The reason it matters: Ask how that document affects their ability to decide the insurance claim.
Acceptable alternatives: If you don't have the original document, ask whether a bank statement, email confirmation, photograph, valuation, or other record would satisfy the proof of a claim requirement.

This keeps the issue practical. The insurer may be entitled to ask for evidence, but a vague request for "more information" isn't the same as explaining what is missing and why it matters.

Adjuster Backlogs and High Claim Volumes

Some claims slow down because the insurer is waiting for a loss adjuster to inspect damage, prepare a report, or respond to further questions. After severe weather events, insurers and loss adjusting firms can face high claim volume and internal backlogs.

Legacy IT systems and internal handoffs can also slow down communication. That doesn't make every delay unreasonable, but it does mean you should keep a written record of who has the next action and when they expect to complete it.

Also, remember that a loss adjuster always acts for the insurer and not for you. They may be perfectly pleasant, and they may do their work professionally, but at the end of the day they are still appointed by the insurer. In contrast, a loss assessor is different because the policyholder engages them.

This difference becomes important in cases where the loss adjuster is driving the delay. If the claim is stuck because the report has not been issued, ask the insurer for a written update on when they expect to receive it. If the report has been issued but the insurer has not shared the reason for the delay, ask them to explain the remaining issue instead.

Complex Investigations and Disputed Liability

Some delayed insurance claim settlements involve genuine investigation. In motor claims, the insurer may be waiting on another driver, a witness statement, repair evidence, or a liability decision. In home claims, they may be deciding whether the damage came from a sudden insured event or from wear and tear.

Where the insurer is relying on policy wording, ask them to identify the exact clause and where it appears. Cover terms and section-specific exclusions usually sit in the section you are claiming under. Wider exclusions often appear in the general exclusions, while obligations that apply across the policy usually sit in the general conditions.

For example, if a roof leak is attributed to poor maintenance rather than storm damage, the practical issue is cause. The insurer may say the damage was gradual, while you may say it resulted from a sudden weather event. An independent surveyor's or engineer's report may help clarify that cause, but it doesn't automatically resolve the claim.

The same issue can arise where the insurer says some of the damage was pre-existing damage rather than damage caused by the insured event. In that situation, the practical question is usually what evidence separates old damage from new damage. The point is to separate evidence from argument.

Subcontractor and Third-Party Delays

A claim can also stall because someone outside the insurer's own claims team has not responded. That might be another driver's insurer, a medical provider, an appointed repairer, a drying company, a surveyor, or a subcontractor handling repairs.

Third party involvement can explain delay, but it should not leave you with no information. Your insurer remains the organisation you are dealing with under your policy, so they should be able to tell you what they are waiting for and what step comes next.

Subcontractor repairs create a particular problem because the policyholder may be passed between the insurer, the repair network, and the contractor. If that happens, ask the insurer to confirm who is responsible for the next step, what has been agreed upon, and when they expect the repair issue to move forward.

Here, we recommend keeping the request factual because a written timeline helps you show the difference between a claim that is genuinely progressing and one where responsibility is being passed around without a decision.

Deliberate Stalling Tactics

People often describe an insurance company as stalling when they receive repeated requests for the same information, long periods of silence, or updates that do not answer the question asked. Those are real claims handling problems, regardless of the label being used.

In these situations, it's better to focus on the conduct rather than trying to prove motive. That is, you don't need to show that someone intended to delay the claim before you can complain about poor handling.

Ask yourself this: has the insurer explained what they need, why they need it, and when they expect to make the next decision? If not, your next step is usually to put that in writing and ask for a clear answer.

Below are a few common examples of insurer stalling tactics at play:

Repeated requests: The insurer asks for documents you have already provided, without explaining why the earlier copies were insufficient.
Unclear ownership: The insurer, repairer, loss adjuster, or subcontractor each says someone else has the next action.
No decision point: Updates describe activity, but they don't say what needs to happen before the claim can be accepted, refused, or settled.
Moving reasons: The stated reason for delay changes, but the insurer doesn't explain how the new issue affects the claim.

FCA Rules (or What Happens if a Claim Is Taking Too Long)

The key FCA rule to note here is ICOBS 8.1.1R. It says insurers have to handle claims promptly and fairly, they must not unreasonably reject a claim, and they must settle promptly once settlement terms are agreed. For the insured, these rules are enforceable as though they were law.

That doesn't create one fixed number of days for every insurance claim, though. A simple claim may be capable of being decided quickly, while a complex damage assessment or disputed liability issue may take longer. The question is whether the insurer's handling is prompt and fair in the circumstances.

A delay becomes harder for the insurer to justify where they can't explain what remains outstanding, ask for the same documentation again without a reason, or where third party involvement is used as a reason for silence rather than for a clear update.

If you raise a formal complaint, the insurer's own complaints procedure becomes important. The complaint should identify the handling issue, refer to the FCA prompt handling rule, and ask the insurer to set out the next action and timing in writing.

What Can I Do if My Claim Is Taking Too Long?

If your insurance claim is taking too long, the strongest practical route is to escalate things further. Phone calls can be useful for updates, but written contact gives you a record of what was asked, what was promised, and what happened next.

The steps below keep the issue clear because each step creates a record and moves the dispute toward an external route:

Ask the insurer to confirm what is missing, who has the next action, and when they expect the next step to happen. If they say they are waiting for a loss adjuster, repairer, medical provider, or third party insurer, ask them to identify the specific dependency.
If the claim still doesn't move, use the insurer's formal complaints process. Say that you are complaining about delay in the handling of your insurance claim, refer to FCA rule ICOBS 8.1.1R, and explain why you believe the handling has not been prompt or fair. For best results, make sure to keep it as a plain English rebuttal to the insurer's handling.
Once you have made a formal complaint, the insurer has 8 weeks to issue their final response. They may resolve the complaint sooner, but if they do not send a final response within that period, you may be able to take the complaint to the Financial Ombudsman Service.

The Financial Ombudsman Service is free for consumers and handles disputes up to £455,000. If you accept an Ombudsman's decision, the decision binds the insurer. The Ombudsman can also award modest compensation for distress and inconvenience caused by unreasonable delay.

If the insurer sends a final response letter, check the referral wording carefully. For eligible consumer complaints, the Financial Ombudsman Service usually expects the complaint to be referred within 6 months of that final response.

How SmarterClaims Can Help

A delayed claim is often hard to challenge because the problem sits across evidence, procedure, and policy wording. Writing it yourself means working out whether the insurer is genuinely missing information, relying on a clause in the policy wording, waiting for a third party, or simply not moving the claim forward in a way that meets FCA claims handling standards.

SmarterClaims can review your insurer's correspondence and relevant policy documents, identify the issues causing unnecessary delay, and help you prepare a structured letter challenging how the claim is being handled. Where relevant, it can help cite FCA rules, explain the Financial Ombudsman Service escalation route, and set out what you are asking the insurer to do next.

About SmarterClaims

SmarterClaims is built on the 40-year playbook of Steve Smart, former UK General Counsel at AIG and current Chairman of Lancashire Insurance UK, with a background as a solicitor and Lloyd's broker.

More than £25M has been recovered in refused claims using this playbook. That figure does not promise any outcome in an individual claim.

Final Thoughts

A delayed insurance claim isn't the same as a refused claim. But it still needs active management, because delay can leave you paying costs, chasing different organisations, and receiving updates that do not move the claim towards a decision.

The important distinction is whether the insurer is waiting for something relevant, or whether the handling itself has become unreasonable. A written chase, a formal complaint, the 8 week complaint period, and the Financial Ombudsman Service give you a practical route for testing that distinction.