Car insurance claims have long been a pain point for South African motorists. Delays, unclear communication, disputed assessments, and inconsistent outcomes have often left policyholders feeling powerless at the very moment they need support most. In response, the Financial Sector Conduct Authority has continued to tighten its conduct standards, and by 2026 these changes are materially reshaping how insurers manage and settle motor claims.
The aim is not only to improve efficiency, but to ensure fair treatment, transparency, and accountability across the entire claims journey. For consumers, this means clearer rights and stronger protection. For insurers and intermediaries, it means higher expectations and closer scrutiny.
Understanding what has changed helps motorists know what to expect when submitting a claim, and how to assert their rights if something goes wrong.
Why the FSCA is focusing on claims conduct
The FSCA’s mandate is to protect financial customers and promote confidence in the financial system. Claims handling sits at the centre of that mandate because it is the point where insurance promises are tested in real life.
Over the past decade, complaints data consistently showed that motor insurance claims were among the most disputed areas in short-term insurance. Issues ranged from unexplained claim rejections and slow turnaround times to poor communication and pressure to use certain repairers.
The FSCA’s latest conduct standards build on existing Policyholder Protection Rules and Treating Customers Fairly principles, but go further in setting clear expectations for how insurers must behave during claims. By 2026, these standards are no longer aspirational guidelines; they are enforceable requirements with real consequences for non-compliance.
Clearer timelines and fewer grey areas
One of the most noticeable changes for policyholders is the emphasis on reasonable and clearly communicated timelines. Insurers are now expected to manage claims proactively, not reactively.
From the moment a claim is lodged, insurers must explain the process, outline what information is required, and give realistic timeframes for each stage of the claim. If delays occur, policyholders must be informed promptly and given reasons, rather than being left to chase updates themselves.
This shift is changing internal claims workflows. Insurers are investing in better tracking systems and accountability measures to ensure claims do not stagnate without explanation. For consumers, this reduces uncertainty and makes it easier to challenge unnecessary delays.
Stronger rules around claim rejections and partial settlements
Historically, many disputes arose because claims were rejected or reduced with little explanation beyond a policy clause reference. The FSCA’s conduct standards now require insurers to give clear, specific, and understandable reasons when a claim is declined or only partially paid.
This includes explaining how policy terms were applied to the facts of the claim and what evidence was relied upon. Vague or generic responses are no longer acceptable.
For motorists, this change is significant. It allows them to assess whether a decision is fair, seek clarification where needed, and escalate disputes with a clearer understanding of the insurer’s position. It also discourages insurers from relying on technicalities without properly considering the individual circumstances of the claim.
More transparency in assessments and repair decisions
Vehicle assessments and repair processes have traditionally been a source of frustration, especially when insurers insist on preferred assessors or repairers without clear justification. Under the latest conduct standards, insurers must ensure that these arrangements do not unfairly disadvantage policyholders.
Assessments must be objective, and insurers must explain how repair or write-off decisions are reached. Where a policyholder has the right to choose a repairer, that right must be communicated clearly and not undermined through pressure or misinformation.
The standards also address conflicts of interest. Insurers are expected to manage relationships with assessors and repair networks in a way that prioritises fair outcomes, not cost savings at the expense of quality or safety.
Improved communication and customer support expectations
The FSCA has placed renewed emphasis on how insurers communicate during emotionally stressful events such as accidents or theft. Claims communication must be clear, respectful, and accessible.
This includes using plain language rather than legal or technical jargon, accommodating vulnerable customers, and ensuring that call centres and digital platforms provide consistent information. Automated systems and chatbots can still be used, but insurers remain responsible for the quality and accuracy of the information provided.
For policyholders, this means fewer confusing messages and a greater ability to understand what is happening with their claim at any point in time.
Greater accountability for intermediaries and third parties
Car insurance claims rarely involve insurers alone. Brokers, call centres, assessors, towing operators, and repairers all play a role. The FSCA’s conduct standards reinforce that insurers remain accountable for the actions of parties acting on their behalf.
If a third party causes unreasonable delays, provides misleading information, or treats a policyholder unfairly, the insurer cannot simply shift the blame. This has prompted insurers to tighten oversight of service providers and review outsourcing arrangements.
For consumers, this results in a more seamless experience, with fewer situations where responsibility is passed from one party to another.
Fair complaints handling and easier escalation
When claims go wrong, effective complaints handling is essential. The latest conduct standards require insurers to treat complaints as an opportunity to correct issues, not as an administrative burden.
Complaints processes must be easy to access, clearly explained, and handled within reasonable timeframes. Policyholders must be informed of their right to escalate unresolved complaints to external dispute resolution bodies such as the Ombud for Short-Term Insurance.
By 2026, insurers are expected to analyse complaint trends and use them to improve claims processes, rather than simply closing cases. This systemic approach benefits all policyholders, not just those who lodge complaints.
How these changes affect motorists in practice
For South African drivers, the practical impact of the FSCA’s conduct standards is a claims experience that is more predictable, transparent, and fair. While not every claim will be approved, decisions are more clearly explained and easier to challenge when necessary.
Policyholders who understand their rights are also better positioned to engage confidently with insurers. Asking for reasons, requesting updates, and escalating concerns are no longer seen as unreasonable demands, but as part of a fair claims process supported by regulation.
Conclusion
By 2026, the FSCA’s latest conduct standards have moved car insurance claims in South Africa toward a more customer-focused model. The emphasis on transparency, accountability, and fair treatment is reshaping how insurers handle claims from start to finish.
While no regulatory framework can eliminate all disputes, these changes significantly reduce the imbalance of power that has historically existed between insurers and policyholders. For motorists, this means greater clarity, stronger protection, and a claims process that better reflects the promise insurance is meant to deliver when it matters most.
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