The Financial Conduct Authority's (FCA) latest regulatory complaints data for the first half of 2024 indicates a 4.2% decline in overall complaints compared to the same period in 2023, according to analysis by market intelligence firm Insurance DataLab.
Insurers handled 764,524 complaints in the first six months of 2024, down from 797,864 in H1 2023. Despite the decline in complaints, total redress payments rose slightly to £62.3 million, compared to £62.2 million in the same period last year.
The data also showed an increase in the average redress payment, which stood at £81.42 in H1 2024. This marks a 6.0% rise from the £76.81 average recorded in the first half of 2023. However, this figure is still below the peak of £112.07 seen in H1 2022, though it remains above pre-pandemic levels.
Motor and transport insurance remains the most complained about category in the UK general insurance market, with 276,794 complaints in H1 2024. This is a slight 0.4% decrease from the 278,034 complaints recorded in the same period last year.
Motor insurance accounted for more than twice the number of complaints of any other product line. Property insurance was the second most complained about, with 100,248 complaints, representing an 8.9% increase from H1 2023.
Five business lines saw a rise in complaints, with medical and health insurance experiencing the largest increase. Complaints in this sector grew by 12.4%, reaching a total of 95,886, making it the third most complained about insurance product in the UK.
Dan King (pictured above), co-founder of Insurance DataLab, noted that the decrease in complaints reflects an encouraging trend, but he emphasised the need for further improvement across certain areas.
"The latest complaints data shows an encouraging trend but there still remains much room for improvement. Our analysis also highlights specific areas, such as property and health insurance, where insurers must focus on addressing customer concerns,” he said.
King also pointed to the importance of understanding these trends in the context of regulatory expectations.
"Understanding this data is crucial for insurers in helping them to improve service levels and monitoring customer outcomes. In this age of Consumer Duty and an increasingly interventionalist regulator, such insight is more important than ever," he said.
The findings suggest that while overall complaints may be decreasing, insurers still face challenges in addressing specific product lines, with a need to continue refining service and customer engagement strategies.
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