The latest Financial Ombudsman Service latest quarterly data (published 14 September 2023) shows that complaints relating to motor and buildings insurance have reached their highest level in five years
Across the board all the most complained about products have seen year-on-year increases
Complaints about buildings, car and motorcycle insurance have reached a five-year high, according to new figures published by the Financial Ombudsman Service today.
In the first three months of this financial year (April-June 2023), the Financial Ombudsman received 3,869 complaints about car/motorcycle insurance alongside 1,776 buildings insurance cases.
By comparison, in the first three months of 2019/20 the Financial Ombudsman received 2,626 complaints about car and motorcycle insurance, and 1,275 complaints about buildings insurance.
This increase in insurance complaints appears to be caused by several factors. There has been a rise in insurers delaying in paying out on claims, while at the same time contractor availability has impacted on the speed of repairs, as has the ability to source materials.
Travel insurance complaints have also doubled in a year – increasing from 504 complaints in the first quarter of 2022/23 to 1,101 in the same quarter this year. That’s the highest Q1 figure for travel insurance complaints in more than a decade.
Abby Thomas, Chief Executive and Chief Ombudsman at the Financial Ombudsman Service said:
Whether it’s your car, your holiday or your home, having the right insurance is fundamental and should offer people the peace of mind that, when things go wrong, they’re protected.
Where these complaints are driven by insurers delaying paying out on claims that’s unacceptable. We expect insurers – as well as other businesses – to treat their customers fairly and in a timely manner.
If consumers don't feel they've been treated fairly by a financial business, they should contact our free, independent service and we'll investigate their complaint.
Rachel Lam, the Ombudsman Director responsible for insurance, said:
Following the pandemic, confidence around travel is growing again and with that a greater awareness of the need for insurance.
We need to ensure that alongside the growth in travel policy sales the industry continues to behave responsibly, and consumers feel satisfied with the service they are provided.