Increases in complaints to the Financial Ombudsman Service (FOS) around life insurance reflect consumer interest in the sector and their ability to challenge decisions by insurers, according to a senior FOS staffer.
FOS, Lead Ombudsman Investments, Dr June Smith said while there had been a 6% growth in life insurance complaints from 2014 to 2015 this was consistent with greater awareness of life insurance, awareness of the ombudsman service and interaction with financial advice.
According to the 2015 FOS Annual Report the service accepted 1227 complaints related to life insurance of which around half were related to denied claims or other claims handling issues.
Smith said these complaints were driven by consumer responses to insurers with FOS supportive of the role of financial advice in insurance.
“…the way in which a financial services provider engages with consumers says much about its culture…”
“Access to quality financial advice is an important matter and FOS works with industry groups to ensure access to financial advice. It is clear that advice has a role in assessing consumer needs and ensuring cover is right for them and dealing with issues around claims and around disclosure to insurers,” Smith said.
However, Smith urged life insurers to expand their view and look at the whole lifecycle of a product from its development, sale and distribution to the claims and dispute process stating FOS was encouraging peak industry bodies in their development of codes of practice.
“We are working with industry on the area of disputes and denials and have asked them to look at ethical approaches which are above the law because the way in which a financial services provider engages with consumers says much about its culture,” Smith said.
Does anyone know what percentage of FOS complaints relate to direct insurers?
Hope you get an answer I tried three times to three different dept’s last year and never got a response ?
Strangely suspicious
FOS encouraging peak Industry bodies in their development of codes of practice, will not stop Retail Life Insurers being decimated from within, as Life Companies have differing views depending on which department you talk to.
Life Companies underwrite and support Retail / Group / Industry funds and hundreds of Direct product floggers, whose focus is to take Business away from everyone else.
It is not a case of the left hand not knowing what the right hand is doing, it is a case of both hands and legs trying to amputate each others limbs, while not being even aware that their long term survival, requires a level playing field so each limb can specialise in it’s own area in conjunction with, not against each other.
The losers in this will be the consumers as usual and the retail Life advised area that is the only part of the Life Industry that truly represents the consumer.
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