Across main financial product areas, insurance received the second highest number of complaints
Motor and buildings insurance were among the most complained about products by consumers during the last financial year, new figures from the Financial Ombudsman Service (FOS) have revealed.
In its annual complaints data report, which was released yesterday (14 June 2023), the FOS said it received 165,149 complaints over products between April 2022 and March 2023, an increase from 164,560 during the previous year.
Its report also revealed the top five most complained about products – current accounts topped the list, followed by credit cards, car/motorcycle insurance, hire purchase (motor) and buildings insurance.
The FOS also gave insight into the common problems raised by consumers.
It revealed complaints over car/motorcycle cover rose 27% year-on-year to 11,851, claiming this was “largely due to insurers delaying paying out on claims”.
Oxbow Partners recently said it was ”undeniably a tough time to be a motor insurer”, warning that claims inflation would remain elevated during 2023 and predicted an overall market combined ratio of 106%.
Meanwhile, buildings insurance accounted for 6,497 complaints in the last financial year, an increase of more than a quarter.
The FOS said this was a result of an increase in disputes about declined claims and delays as well as claim values.
Overall figure
Overall, a total of 39,730 complaints were made about insurance in the last financial year.
Read: Home insurance market seeing considerable customer churn – Confused.com
Read: Below inflation rise in combined home buildings and contents insurance costs
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This was the second highest figure across the main financial product areas – banking and payments topped the list with a figure of 61,995.
Abby Thomas, chief executive and chief ombudsman of the FOS, said: “Over the past year, the FOS 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.”
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