ILC ARTICLE

Motor insurance complaints more than double next product line 


New figures from the Financial Conduct Authority have revealed that complaints received about motor insurers have risen by 18.2% in the last year. 

Analysis of the data carried out by Insurance DataLab found that customers made more than 280,000 complaints about motor insurance over the second half of 2023, up from a little under 240,000 for the same period in 2022. 

In total, more than 2.5 million motor insurance complaints have been filed in the last five years, which is more than double the second most complained about business line in general insurance – property.  

Over that same period, insurers have had to pay out almost £580m to settle motor complaints compared to the £356m paid out to redress property insurance complaints. 

However, industry-wide upheld complaints have fallen in recent months, down from 67% in the first half of 2022 to 58% in the second half of last year.  

Insurance DataLab co-founder Matt Scott said: “It is important to remember that these figures relate to internal complaints handled by the insurer, and when complaints are not upheld there are many that will be referred on to the Financial Ombudsman Service (FOS) by the policyholder. And those referrals have been on the increase in recent years – as has the proportion of complaints being upheld by the ombudsman. So, while a falling upheld rate in the FCA figures may appear to be a positive for the industry, it may just be masking a problem if these decisions are later overturned by the ombudsman.” 

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