FOS complaint volumes rise across leading insurance lines in Q2 2026

Complaints referred to the Financial Ombudsman Service (FOS) rose sharply during the second quarter of 2026, with motor insurance accounting for the largest increase, according to new analysis from Insurance DataLab.

The market intelligence firm’s latest review found that total insurance complaints increased by 23% year-on-year to 11,796 in Q2 2026, compared with 9,606 during the same period in 2025.

Motor insurance recorded the most significant rise, with car and motorcycle complaints increasing 37% to 3,918 referrals. Travel insurance complaints climbed 26% to 1,283, while private medical and dental complaints rose 22% to 525.

Pets and livestock complaints increased 14% to 596, while buildings insurance complaints edged up by 1.7% to 1,687.

Meanwhile, over the 12 months to June 2026, motor insurance remained the most complained about line of business, generating 14,282 ombudsman referrals. Buildings insurance followed with 6,903 complaints, ahead of travel insurance at 4,869.

Claims remain key issue

Claims handling continued to be the biggest source of customer dissatisfaction, accounting for 73% of complaints in Q2 2026, up from 71% a year earlier.

Policy administration generated a further 22% of referrals, while complaints relating to sales and advice fell from 7% to 5%.

Despite rising complaint volumes, Insurance DataLab found upheld rates declined across all five major product lines.

Pet and livestock insurance recorded the largest reduction, with the proportion of complaints upheld in favour of consumers falling from 49% to 29%.

Motor and buildings insurance both saw upheld rates fall to 33%, while travel dropped to 32%. Private medical and dental insurance recorded the lowest upheld rate at 20%.

Customer outcomes focus

Insurance DataLab co-founder Dan King said: “The fall in upheld rates offers some encouragement, particularly the significant drop for pet insurance, but the increase in the number of complaints being referred shows why firms cannot afford to look at outcomes in isolation.

“Understanding why customers are complaining is just as important as knowing whether those complaints are ultimately upheld. Looking at complaint volumes, causes and outcomes together can help insurers and brokers identify recurring issues, inform product reviews and focus improvements where they are most needed.

“With customer outcomes remaining firmly in the regulatory spotlight, benchmarking against the wider market can also help firms understand where they are performing well and where further attention may be required.”