News

Financial Ombudsman Service - disputes on the rise

News >>

FOS: Disputes on the rise

FOS is the Financial Ombudsman Service which deals with disputes made to it after an Insurance Company has declined or not adequately settled a claim.

It is a concern that Insurance Companies have yet to appropriately deal with their claims approach or service. Recent statistics from the Financial Ombudsman Service (FOS) show total disputes across the financial services sector referred to the ombudsman were up 29% for the first quarter of 2012, compared with the corresponding period in 2011.

FOS cases have risen steadily over the past year, only reducing slightly in the last part of 2011.

In 2011 the number of disputes increased 13% from the first quarter to the second quarter. Then 12% from the second quarter to the third quarter, before reducing by 12% in the final quarter of the year.

However already the first quarter of 2012 disputes referred to FOS were up 16% on the final quarter of 2011, with 9590 new disputes lodged.

Out of those, General insurance accounted for 2814 of the disputes received by FOS. Credit disputes account for 49% with General Insurance making up 29%.

In the January-March 2012 quarter, FOS closed 8734 disputes – 5% more than in the previous quarter and 20% more than for the first quarter of last year.

Of the disputes closed, 68% were resolved through an agreement between the financial services provider and the consumer, with only 8% formally decided by FOS.

Of the 8% of disputes resolved by FOS, 59% were closed in favour of the financial services provider, while 41% were resolved in favour of the consumer.  For many of us, those resolved in favour of the policy holder should have been avoided.

  

Last changed: Jun 25 2012 at 9:42 PM

Comments

  1. None Found

Add Comment

Latest News

CPR Insurance Services Awarded Authorised Representative Insurance Business of the Year for 2019

Mandy and Robert Cooper were proud to receive the inaugural Authorised Representative Business of the Year from ANZIIF in the Australian Insurance Industry Awards for 2019.

We share this award with all our staff, Lauren, Guy and Sarah and thank them for their dedication in providing the best possible customer service. We also thank our clients who have made our business what it is today. We thank you all so much.

read more

Finalist in the Insurance Industry Awards

We were pleased to be advised this week that we are a finalist in the Australian Insurance Industry Awards in the category of Most Outstanding Authorised Representative Business for 2019.

Our company very much appreciates the accolade and just being nominated is prestigious to us. The awards ceremony is in August and we will see how we go, but being in the Top 4 is a credit to our team who have worked tremendously hard in the last eight years.

read more