SMFSC Joins Global Action on Insurance Claims Reform

The San Marino Financial Standard Council (SMFSC) has announced a joint initiative with international and domestic regulatory counterparts to address poor claims management practices within the insurance and financial services sectors.

The coordinated effort aims to raise industry standards, improve customer outcomes, and ensure fairness, transparency, and accountability throughout the claims handling process.

“Fair treatment during the claims process is the foundation of consumer trust,” the SMFSC said.
“When claims are delayed, mishandled, or ignored, confidence in the entire financial system suffers.”

Findings Highlight Systemic Weaknesses

Joint supervisory assessments conducted by SMFSC and partner regulators identified recurring problems in claims management, including:

• Inconsistent communication with customers during the claims process;
  
• Delays and lack of transparency in decision-making;
  
• Poor record-keeping and insufficient oversight of claims-handling staff;
  
• Failure to provide clear reasons for rejected claims;
  
• Weak governance frameworks in firms outsourcing claims management.
  

The findings suggest that some firms continue to prioritise operational convenience over customer fairness, exposing consumers to unnecessary distress and financial harm.

Joint Action Plan for Improvement

In response, SMFSC and participating regulatory authorities have launched a joint action plan to drive improvement across the sector. Key steps include:

• Establishing minimum performance standards for claims response times and customer communication;
  
• Implementing mandatory staff training programmes to strengthen claims-handling competence;
  
• Requiring firms to maintain transparent records of claims assessment and decision rationale;
  
• Enhancing board-level accountability for the oversight of outsourced claims management activities;
  
• Introducing periodic compliance reviews to monitor progress.
  

“Claims management is not merely administrative — it reflects the ethical core of financial service,” the Council noted.
“Our collective efforts will ensure customers are treated with fairness and respect.”

Embedding Self-Regulation and Accountability

SMFSC emphasised that, as a self-regulatory body, it plays a pivotal role in embedding ethical conduct and professional discipline within the financial sector.
By working collaboratively with other regulators, the Council seeks to harmonise standards, share best practices, and establish a consistent global approach to claims oversight.

The initiative also reinforces SMFSC’s ongoing campaign to improve governance, consumer protection, and operational transparency across all financial institutions operating under self-regulatory principles.

A Shared Commitment to Consumer Confidence

The SMFSC reiterated that effective claims management is essential to maintaining public trust and the credibility of the financial system.
The Council encouraged firms to view this initiative not as a compliance burden but as an opportunity to rebuild consumer confidence and differentiate through ethical performance.

“Consumers should never have to fight to be treated fairly,” SMFSC concluded.
“By joining forces, we are setting a new benchmark for integrity and accountability in financial services.”