Surge in complaints about insurance to ombudsman’s office

The ombudsman is so concerned about this that he is due to meet the sector to discuss the surge in complaints.

Around a third of all the complaints received by the Financial Services and Pensions Ombudsman (FSPO) last year related to insurance.

Some 2,142 insurance complaints were received last year, up 18pc on the previous year.

The number of insurance complaints has doubled since 2022, ombudsman Liam Sloyan said in a report on the activities of his office last year.

The financial services ombudsman’s office provides a free, independent dispute-­resolution service for consumers and small business owners.

Mr Sloyan said: “This is the third year in succession that we have seen a significant growth in the number insurance complaints received, with the number increasing from 1,129 in 2022 to 2,142 in 2025, almost doubling in just three years.

“This level of increase should be of concern to the industry and I will engage with the sector on this matter.”

The largest number of insurance complaints received related to motor insurance, followed by private health insurance and then travel insurance.

More than a quarter of insurance complaints received in 2025 concerned claim handling.

This was followed by complaints concerning the rejection of a claim.

Customer service and maladministration and refusal to give a product or service also featured in the top five conducts complained about in 2025, as they did in 2024.

The ombudsman has wide-ranging powers to deal with complaints against financial service providers. Firms can be directed to provider to rectify the conduct that is the subject of the complaint.

There is no limit to the value of the rectification that can be directed.

The ombudsman can also direct a financial service provider to pay compensation to a complainant of up to €500,000.

Mr Sloyan said his office closed more complaints last year than ever before.

There has been heavy criticism of the ombudsman’s office in the last while for its slowness in dealing with some complaints.

Calls has also been made for a shake-up of how the ombudsman’s office operates after it was revealed that large numbers of consumer complaints are being rejected.

Mr Sloyan said 6,282 complaints were closed in 2025, represents a 6pc increase on 2024 and a 34pc increase since 2022.

He said the number of complaints received reached record levels in 2025 at 7,004.

Nine out of 10 of all complaints that closed in 2025 closed in the early-resolution and informal processes, without requiring a formal investigation or a legally binding decision.

Customer service was the most complained of conduct in 2025, with 19pc of complaints concerning an issue of customer service.

Some 3,802 banking complaints were received, representing 54pc of all complaints.

The number of tracker mortgage complaints the office receives each year continues to decline. During 2025, the ombudsman received 11 tracker mortgage-related complaints and closed a further 143.

A third of all banking complaints received were related to the conduct of disputed transactions.

This is a 28pc increase in disputed transaction-related complaints since 2024.

Disputed transactions include fraudulent transactions, failure to provide accurate account information or balances, failure to provide security measures, non-receipt of money, and unauthorised withdrawals.

source

Leave a Reply

Your email address will not be published. Required fields are marked *