The FOS, a free to use service set up to resolve customer complaints about financial businesses, reported a 20% rise in the number of insurance-related grievances it received over the last year. The total number of complaints upheld by the ombudsman was also up.
Here, Which? digs into the data to find out what people's main gripes were over the last year and how the FOS can help you if you have an unresolved dispute.
Rise in complaints about insurance
Out of the 165,149 complaints the FOS received between 1 April 2022 and 31 March 2023, there were 39,730 complaints about insurance – that includes all types of cover. That's up from 33,127 the previous year. The uphold rate (when an ombudsmand rules in the customer's favour) for overall insurance complaints has also gone up from 28% to 31% over the same time period.
The lion's share of those cases (11,851) were about car and motorcycle insurance. It was the third most complained about product overall during the last year financial year, after current accounts and credit cards.
Not only are complaints about this cover up from 9,310 complaints in 2021-22, the data shows a slight increase in the number of cases being upheld by the FOS - from 28% to 30%.
Buildings insurance ranked the fifth most complained about financial product over the last year, with numbers jumping by over a quarter (27%), from 5,101 in 2021-22 to 6,497 in 2022-23. The uphold rate, however, remained steady at 33%.
There was also a huge leap in the amount of complaints about travel insurance - from 2,116 in 2021-22 to 3,745 in the last financial year. That's a whopping rise of 77% and makes it the third most complained about insurance. Although the number of complaints upheld by the FOS has fallen from 42% to 36%.
Find out more:What were the complaints about?
The majority of complaints about car and motorcycle insurance were about delays to claims being paid out.
Other consumers complained their car was worth more than their insurer had given them, following a theft or an accident where the car was written off.
The FOS also found examples of motor insurers not taking into account all the available information, leading to lower payouts.
The increase in complaints about building insurance is due to a rise in disputes about declined claims and delays, as well as arguments over the value of claims.
Covid-19 was a bugbear for some travel insurance customers who complained to the FOS about the impact of positive or delayed test results, or the lack of testing available.
There were also a small number of complaints about delays caused by the insurer in providing medical assistance or arranging repatriation for customers abroad.
Find out more:How to complain to the FOS
Before you take any complaint to the FOS, you should always try to resolve the dispute with the company directly first. Following whatever complaints procedure they have in place, clearly explain the problem and what you want done about it.
After considering all the evidence, the FOS will write to you and the company with the decision and if there is to be an 'award'. If your complaint is upheld, then this letter will include details of what the company must do to put things right.
Can you appeal the decision?
If either side is unhappy with the final decision, they can't appeal it - either with another ombudsman or through the courts.
While the award is legally binding for the company, that's not the case for the customer. If they therefore choose not to accept the ombudsman's decision, they are free to take legal action through the courts instead.
Abby Thomas, chief executive and chief ombudsman of the Financial Ombudsman Service, said: 'Over the past year, the Financial Ombudsman Service continued to help hundreds of thousands of customers who had problems with financial businesses on issues across banking, lending, insurance and investments.
'If consumers have problems with their financial provider, they can come to our service with confidence that we’ll resolve their complaint fairly and impartially.'
Find out more:Which? Limited is registered in England and Wales to 2 Marylebone Road, London NW1 4DF, company number 00677665 and is an Introducer Appointed Representative of the following: 1. Inspop.com Ltd for the introduction of non-investment motor, home, travel and pet insurance products (FRN 610689). Inspop.com Ltd is authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635) and is registered in England and Wales to Greyfriars House, Greyfriars Road, Cardiff, South Wales, CF10 3AL, company number 03857130. Confused.com is a trading name of Inspop.com Ltd. 2. LifeSearch Partners Limited (FRN 656479), for the introduction of Pure Protection Contracts, who are authorised and regulated by the FCA to provide advice and arrange Pure Protection Contracts. LifeSearch Partners Ltd is registered in England and Wales to 3000a Parkway, Whiteley, Hampshire, PO15 7FX, company number 03412386. 3.Which? are an Introducer Appointer Representative of Optimise Media Limited (FRN 313408), for the introduction of HSBC Group, who are authorised and regulated by the Financial Conduct Authority to provide credit brokering activity. Optimise Media is registered in England and Wales to Exchange Street Buildings, 35-37 Exchange Street, Norwich, England, NR2 1DP and company number 04455319. We do not make, nor do we seek to make, any recommendations on financial products or services that are regulated by the FCA, as we’re not regulated or authorised by the FCA to advise you in this way. In some cases, however, we have included links to regulated brands or providers with whom we have a commercial relationship and, if you choose to, you can buy a product from our commercial partners. If you go ahead and buy a product using our link, we will receive a commission to help fund our not-for-profit mission and our campaigns work as a champion for the UK consumer.
source https://www.which.co.uk/news/article/car-and-buildings-insurance-complaints-rise-what-were-most-disputes-about-aCR6V1v1Zq1q