Motor insurance remains at the centre of the UKGI complaints landscape, accounting for nearly a third of all complaints over the past five years, according to our analysis of the latest FCA complaints data.
With more than 2.5 million complaints since 2019, it receives more than double the volume of the next most complained about line – property insurance.
And while complaints volumes have fallen 12% over the last five years, the total redress paid has increased by 14%, reaching nearly £55m in H2 2024. Average redress now stands at £77.06 per complaint, well above pre-pandemic levels. This suggests that although complaints are falling, they may be becoming more complex and expensive to resolve.
Some lines have also seen sharp increases in complaints over this period, with warranty complaints up 68%, and medical/health insurance complaints rising 39%. Pet insurance and packaged multi-products also saw significant increases, indicating shifting pressure points across the market.
Encouragingly, upheld rates have begun to improve, dropping back to 57.3% in H2 2024, down from a peak of 67% in the first half of 2022. This points to improvements in how insurers are resolving complaints before escalation, although the figure remains worryingly high.
However, there are concerns over response times. The proportion of complaints resolved within three days has dropped to 45.9%, while those resolved between three days and eight weeks are at their highest recorded level, signalling longer waits for many customers.
With consumer expectations high and regulatory scrutiny intensifying, insurers must act now to maintain momentum. Ongoing benchmarking and performance tracking will be key to improving outcomes across the market and avoiding regulatory intervention.
How Insurance DataLab can help
Whether you’re looking to benchmark complaints performance or support regulatory compliance, Insurance DataLab provides the tools you need to stay ahead. We offer detailed complaints data analysis across product lines, individual businesses, and complaint type, supported by data from the FCA and the Financial Ombudsman Service.
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