Motor insurance remained the most complained-about product in the UK, generating nearly 3,600 complaints to the Financial Ombudsman Service (FOS) in the final quarter of 2024, according to new findings from market intelligence firm Insurance DataLab.
The data revealed that five insurance categories—motor, buildings, travel, pet, and private medical/dental—accounted for almost 70% of all general insurance complaints lodged with the FOS during the period. While motor insurance complaints were down from the 4,000 recorded in the same period in 2023, they still made up nearly a third of all complaints received.
Buildings insurance was the second-most complained-about category, with over 1,700 complaints (16%), followed by travel insurance with 1,100 complaints (10%). Pet and livestock insurance (600 complaints, 6%) and private medical and dental insurance (550 complaints, 5%) rounded out the top five.
While complaint volumes provide insight into customer dissatisfaction, Insurance DataLab’s research also highlighted the proportion of cases upheld in favour of consumers, a key measure of insurer performance.
Motor, pet, and buildings insurance all had an upheld rate of 41%, five percentage points above the industry average. Meanwhile, some other insurance lines had even higher upheld rates, with Guaranteed Asset Protection (GAP) insurance topping the list at 53%. Building warranties followed closely at 52%, while commercial vehicle insurance (49%), commercial property insurance (47%), and motor warranties (46%) also reported high upheld rates.
According to Insurance DataLab co-founder Matt Scott (pictured), insurers with high complaint volumes and upheld rates may attract greater regulatory scrutiny in the coming months. “Those insurers that deliver strong underwriting profits but also generate high complaint volumes and high upheld rates are likely to attract closer regulatory scrutiny,” Scott said.
“With the FCA [The Financial Conduct Authority] expected to take a more interventionist approach over the coming months, it’s vital that firms are able to benchmark their performance and spot any emerging issues before they escalate.”
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