Homeserve to outsource handling of complaints

Homeserve, the troubled emergency repair company, is to outsource its complaints handling following a mis-selling scandal.

The firm, which in essence provides emergency insurance cover, had to stop all telesales activity in October after evidence that some customers did not really understand what they were buying.

The company said its UK business continues to make good progress in recommencing its sales and marketing activities. Inbound activity has now increased to cover around 70% of UK affinity partner households and preparation is well underway for the January marketing mailings.

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Separately Homeserve, whose main access to market is through partnerships with utility companies, has announced a new affinity agreement with Sembcorp Bournemouth Water (SBW).

SBW serves 200,000 residents while also having 10,000 of its own home emergency policy holders.

Homeserve, through its network of affinity agreements, now has access to 15 water companies serving 23.5 million households.

Today's news saw Homeserve's share price gain 0.14% in early trading. In the year to date the shares are down 33.5%.

BS