The Australian Financial Complaints Authority (AFCA) has reported a 47% “surge in complaints” from Aboriginal and Torres Strait Islander (ATSI) customers about comprehensive motor vehicle insurance claims. The regulator also said complaints from Indigenous customers about insurance claim delays rose 24%.
“These figures point to serious challenges faced by First Nations customers in accessing fair and timely insurance services,” said Dr June Smith (main picture), the deputy chief ombudsman.
Overall, said the media release, there was a “record” 25% rise in the number of financial complaints from ATSI peoples during the 2023-24 financial year. The release said AFCA received 3,161 complaints from these customers.
The release said delays in insurance claims were a “key issue” behind the rise. Other major issues included unauthorised transactions. AFCA said complaints about financial difficulty were “disproportionately high.”
"More First Nations people are engaging with AFCA’s free and fair service for resolving financial complaints,” said Smith. “This highlights a critical need for the industry to address these concerns and ensure that general insurance is equitable and responsive to the needs of all customers.”
The deputy chief said the data shows a growing need “for more effective and culturally appropriate financial services” for First Nations Australians.
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