The number of general insurance complaints reaching the dispute resolution authority grew 4% to a record 29,096 in the year to June, amid a surge in comprehensive motor vehicle cases.
Australian Financial Complaints Authority chief ombudsman David Locke says while the rise in general insurance cases moderated after a 50% jump the previous year, disputes were at a record high for the second year running.
“We are disappointed the sector has not yet been able to achieve sustained improvement,” he said.
All AFCA complaints were up 9% to a record 105,454. That followed an unprecedented 34% jump in complaints a year earlier.
“These record numbers are still too high,” Mr Locke said. “We are disappointed we haven’t seen a reduction. Firms could be resolving more complaints themselves, or preventing them in the first place.
“It’s in everyone’s interests that rising complaints are tackled at the source.”
Complaints about comprehensive motor vehicle insurance surged 21% to overtake home building cover as the most disputed insurance product. Claim delays led to one-third of vehicle insurance complaints, and claim delays remained the top issue in general insurance overall.
Banking and finance complaints rose 11% to a record 59,636, with scam-related disputes up 81% to 10,951 – or 913 a month on average.
Personal transaction accounts were the most complained about product overall, while unauthorised transactions were the most common issue.
Complaints involving financial difficulty rose 14% to 5525, with home loans making up 1828 of that total.
Full data will be available later this year.
