Complaints about income protection (IP) insurance dropped by 15% in the first quarter of the 2022-23 financial year, according to data from the Financial Ombudsman Service (FOS).
The latest data showed 171 formal complaints about IP policies were lodged with the FOS during April to June 2022, this was down 15% from 201 in the corresponding period of last year.
While the number of IP cases referred to the ombudsman for a decision increased to 72 from 44 in the same quarter of last year, the proportion of those upheld dipped from 21% to 19%.
Private mental and dental insurance complaints also fell from 337 to 307 over the period but ombudsman referrals rose to 87 from 50 in Q1 of the 2021/22 financial year.
However, the uphold rate was half that of a year ago – down to 10% from 20%.
Life and CI complaints
Due to changes in how the FOS has recorded and presented its complaints data this year, year-on-year comparisons for other product lines are not possible, however protection and health insurance complaints remain very low.
There were 237 complaints associated with term assurance in Q1 of this financial year, with 42 referred to an ombudsman and 15% upheld.
For critical illness (CI) cover, 94 new cases were lodged with the FOS, 17 referred to an ombudsman and 11% upheld.
Long term care insurance and family income plans both produced fewer than 10 complaints.
And a combined 225 complaints were made about whole of life products, with 60 referred onwards.
Overall, FOS received 65,740 new enquiries and 35,029 new complaints about financial products in the first quarter of the financial year.
On average it upheld 34% of these complaints. The most complained-about product was current accounts, followed by credit cards.