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

Three Years running - Insurance Brokerage of the Year 1 to 5 staff

Mandy and Robert Cooper were extremely honoured and astounded to once again win, Insurance Brokerage of the Year for 2020 from Insurance Business Australia magazine. This is the third year running.

While this year has not been the easiest of years for the business with Covid 19, the Recession, the hard market and issues at Lloyds of London, we are literally all in this together as an Insurance Industry.

CPR Insurance Services continues to make our clients the number one focus of our business while managing our relationships with Insurers, who we need more than ever in this market climate.

CPR Insurance Services are a highly ethical Brokerage with a reputation as a trusted advisor who always acts in the Client's best interests. Their experience, knowledge and expertise is amongst the highest in the industry.

CPR Insurance Services is now ten years old as a business and is proud of being an Authorised Representative of Ausure and their partnership with Steadfast, giving CPR the strength and backing to match it with any Broking firm in the Insurance Industry, but remain focussed on supporting the Small to Medium business segment.

Memberships of the National Insurance Brokers Association, Australia and New Zealand Institute of Insurance and Finance, Australian Insurance Law Association, Australian Professional Indemnity Group and the Australian Institute of Company Directors, ensures CPR Insurance Services maintains the high standard of knowledge and expertise required to be one of the best Brokerages in Australia.

CPR Insurance Services also plays a strong role in their local community supporting other Sporting Clubs and Community organisations. They also support and promote local businesses with their operation of the Kedron Brook Business Group who meet regularly and has 174 members.

We are truly honoured to receive this National award once again for the third year as a recognition of CPR Insurance Services contribution.

read more

Finalist for QLD Broker of the Year

Robert Cooper was honoured to be nominated as a finalist for Queensland Insurance Broker of the year for 2020, as part of the National Insurance Brokers Association. Unfortunately he missed out on the ultimate award but is a reflection of the high standard that the industry now has for such awards.

read more