Complaints about protection and health insurance products have continued to rise with private medical insurance (PMI) and income protection (IP) seeing the greatest increases, according to the Financial Ombudsman Service (FOS).
Data from the ombudsman showed rising numbers of complaints across almost all mainstream health and protection insurance products in the first three months of the 2026-27 financial year.
However, upheld rates were generally falling and all except one were below the industry average.
The figures continue a trend of rising complaints, which last year saw almost 5,500 grievances lodged about health and protection products with the FOS, around 2.5% of the overall total.
This has again risen to 2.8% of the 53,553 complaints received by FOS in the first quarter of 2026-27.
IP and PMI keep rising sharply
Increases for PMI and IP could be partly explained by steep rises in product sales over the past five years. However, the figures will still be unwelcome.
PMI and dental insurance were the largest contributor with 532 complaints from April to June, up by more than 100, or 24%, compared to the first quarter of last year. One in five (20%) of complaints decided were upheld, below the 26% financial industry average and down from 25% a year earlier.
IP complaints were up by 65% to 299 from 187 in Q1 2025-26 – the largest rise in numbers and percentage terms in the health and protection market – with only 16% upheld.
Term-life assurance complaints rose by 10% to 218, however it was the only product to see more decisions upheld with 22% in the complainants’ favour.
Critical Illness complaints were up slightly from 163 to 175 and only 7% of cases were upheld – half the figure a year before.
Non-reviewable whole of life complaints more than doubled to 144 but only 19% were upheld, down from 29%.
Reviewable whole of life was the only product area in this sector to see complaints drop as they fell to 84 from 113, but 33% were upheld.
Uphold rate hit by motor finance commission
Overall, the FOS received 53,600 new complaints from April to June 2026.
This was 600 more than in the previous quarter but lower than the 68,000 complaints reported in the same period last year.
The most complained about product was current accounts (8,900), followed by credit cards (5,800), hire-purchase (motor) agreements (5,600), car and motorcycle insurance (4,100), and electronic money (2,300).
“Across all financial products, we upheld 26% of the cases we resolved this quarter in favour of the consumer,” the FOS said.
“The overall uphold rate continues to be affected by the closure of motor finance commission cases. Although we are not able to progress many MFC cases until we get clarity on legal challenges, we have been able to progress some cases.
“This includes where there was no discretion afforded to the broker around the commission payment they received or the interest rate paid by the consumer.
“It also includes where no – or only a small amount of – commission was paid, as well as where the consumer didn’t pay any interest on the loan.
“As these cases have not been upheld, they have an impact on the overall uphold rate. Excluding motor finance commission, the uphold rate across all products was 30%,” it added.