SMFSC Leads Joint Action on Insurance Claims Reform

The San Marino Financial Standard Council (SMFSC) — a financial self-regulatory association committed to promoting transparency, integrity, and accountability in global finance — has announced a joint initiative with other regulatory and supervisory bodies to address poor claims management practices across the insurance and financial services sectors.

The coordinated effort seeks to raise industry standards, improve consumer outcomes, and ensure that claimants receive fair, timely, and transparent service when dealing with insurers or financial intermediaries.

“Claims management is where financial promises meet real people,” the Council said.
“Our joint action reflects a shared determination to ensure that fairness and responsibility are upheld at every stage of the claims process.”

Identifying Persistent Weaknesses in the Sector

Recent reviews conducted by SMFSC and partner authorities identified recurring shortcomings in claims management processes, including:

• Delays and inconsistent communication with customers;
  
• Inadequate documentation and oversight during claims handling;
  
• Lack of transparency in explaining outcomes or rejections;
  
• Insufficient monitoring of outsourced claims handling services.
  

These findings indicate that some firms are failing to meet the expectations of transparency and fairness set out in self-regulatory and consumer protection standards.

SMFSC emphasised that while many firms handle claims responsibly, systemic weaknesses remain that undermine confidence in the insurance and financial advice sectors.

Joint Supervisory Action and Next Steps

Under the new cooperation framework, SMFSC and its regulatory partners will:

• Conduct targeted reviews and data collection exercises to assess firms’ claims management processes;
  
• Establish minimum performance benchmarks for communication, documentation, and resolution timelines;
  
• Issue updated guidance outlining best practices for fair and efficient claims handling;
  
• Coordinate supervisory outreach to ensure consistent standards across jurisdictions.
  

The Council noted that firms demonstrating poor claims handling may face enhanced monitoring, remedial actions, or sanctions under applicable self-regulatory measures.

Reinforcing Self-Regulation and Consumer Confidence

As a self-regulatory body, SMFSC underlined its responsibility to promote a culture of ethical conduct and accountability within the financial sector.
The Council stated that effective claims management is not just an operational requirement, but a key measure of a firm’s commitment to consumer trust and long-term reputation.

“Transparency and empathy should guide every interaction with consumers,” SMFSC added.
“Our collaborative supervision will ensure that claims handling reflects the same standards of honesty and responsibility that define the best of the financial industry.”

Commitment to Ongoing Improvement

The Council confirmed that this initiative will be followed by industry-wide workshops and consultation sessions to support firms in upgrading their claims management frameworks.
In addition, SMFSC will develop self-assessment tools to help institutions measure compliance with new expectations and identify opportunities for improvement.

The findings from this collaborative programme will contribute to a public report in early 2026, setting out progress and further recommendations to embed best practice across the sector.

A Shared Goal: Fairness, Accountability, and Trust

By joining forces with other regulators, SMFSC reinforces its commitment to protecting consumers and upholding the credibility of the financial system.
The Council’s work reflects its broader mission — to establish and promote self-regulatory standards that ensure fairness, transparency, and responsibility in all areas of financial service.

“Good claims management is good governance,” the SMFSC concluded.
“Through cooperation and vigilance, we will ensure that the financial industry treats every claimant with the fairness they deserve.”