General insurance and protection complaints soar by 25% – FOS

General insurance and pure protection complaints soared by more than a quarter (26.6%) for the first half of 2023 compared to the last half of 2022, according to data from the Financial Ombudsman Service (FOS). 

The FOS said there was a total of 24,496 new general insurance and pure protection complaints in the first half of 2023, compared to 19,346 in H2 2022. 

The FOS also published data on funeral planning complaints for the first time, showing that there were 144 new complaints about funeral planning in the first half of 2023. 

A total of 245 businesses featured in the FOS complaints data for the first half of 2023. This was up on the previous six-month period – the second half of 2022 – when 220 businesses featured. 

The data which was published yesterday also showed how many complaints financial businesses received in the first half of 2023. 

Overall, the free and independent service, set up to resolve disputes between consumers and financial businesses, received a total of 93,114 complaints between 1 January and 30 June 2023.  

That was 16.5% higher than the 79,921 complaints it received in the last six months of 2022. 

It said complaints had also risen substantially with fraud and scam cases making up around half of that increase. 

The FOS said that in the first six months of this year it had upheld 37% of complaints in the consumers’ favour, compared to 34% in the second half of 2022.  

Abby Thomas, CEO and chief ombudsman at the FOS (pictured) said: “Financial complaints have risen again, with cases particularly increasing in the banking and insurance sectors.  

“Given the economic challenges people are facing, it’s more important than ever that they feel protected. Whatever their grievance, consumers should expect fair and reasonable treatment from their provider. 

“If consumers don’t feel that’s the case, they can ask our free, independent service to investigate their complaint.”

 

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