FOS data shows travel insurance complaints up 17%

Complaints relating to travel insurance policies grew by 17% year-on-year in the second quarter of 2025, with over 1,000 grievances filed in the three-month period.

This is according to an analysis of Financial Ombudsman Service (FOS) complaints by market intelligence platform Insurance DataLab.

Some 85% of travel insurance complaints related to the claims experience, reinforcing previous assertions that unclear policy wording is often confusing consumers over the extent of their cover.

Travel insurance rated third behind motor and buildings insurance in complaints volume, which combined accounted for over 4,500 cases in Q2 2025.

Both motor and buildings insurance had upheld rates in the mid-30% range, roughly commensurate with levels over the past several years.

Upheld complaints

Insurers may be more concerned with the growth in upheld complaints seen in pet insurance disputes, now sitting at 49%, up from 33% in Q2 2024.

The report suggested that rising costs in complaint handling were adding to the tension in disputes and, “unless insurers can improve communication and provide greater clarity around policies and outcomes, the sustainability of the market will be increasingly called into question”.

Insurance DataLab co-founder Matt Scott said: “Travel and pet insurance are emerging as the most pressing areas of concern in the latest FOS data, with the high upheld rates in the pet insurance market a particularly worrying sign.

“This shifting balance underlines the importance of not just tracking complaint volumes, but also the outcomes.

“High uphold rates can be far more damaging to trust than sheer volume alone and, as this FOS data shows, some insurers still have work to do in aligning customer expectations with their products and processes.”