Claims experience continues to be a key area of concern for the insurance industry. The latest FOS complaints data reveals that there were almost 30,000 claims-related complaints referred to the ombudsman over the 12 months to the end of September 2024, equal to some 71% of all insurance complaints.
This compares to less than 10,000 admin-related complaints (equal to 22% of all complaints) and a little over 2,600 complaints about sales or advice (7%).
And while complaints across all areas fell slightly across the third quarter of 2024, they still remain above levels experienced in previous years.
Claims complaints also had the highest average upheld rate over this period, with the FOS finding in favour of the customer in 42% of cases. This compares to an upheld rate of just 25% for complaints about sales/advice, and 36% for admin-related complaints.
These findings underline the importance of insurers refining their claims processes, particularly given the renewed regulatory focus on customer outcomes in the wake of the Consumer Duty regulations.
And they indicate that insurers need to do more to improve claims transparency, streamline processes, and invest in proactive customer communication to address key pain points and enhance the overall customer experience.
In-depth data on the complaints handling performance of individual companies and product lines is available on the Insurance DataLab market Intelligence platform, alongside insights on claims and underwriting performance. Request a free demo today to find out more.
