Life, Advice Complaints to AFCA Minimal


While AFCA received more than 70,000 complaints in the year to June 30, it appears complaints regarding life insurance continue to be minimal and those regarding risk advice even more negligible.

A statement from the financial complaints authority outlines a preliminary data ‘snapshot’ for the year to June 30, 2021 which shows that under “complaints received by product line” only 2 percent of these were about life insurance (also see: Life Insurance Only a Small Percentage of Complaints Lodged).

Courtesy of AFCA Snapshot for year to 30 June 2021.

The same snapshot reveals that of these complaints about life insurance the issues were:

  • Incorrect premiums: 213
  • Denial of claim: 212
  • Delay in claim handling:172
  • Service quality: 141
  • Misleading product/service information: 109

While AFCA’s searchable public data on financial complaints, Datacube, has yet to be updated with the latest six months, in the period from 1 July 2020 to 31 December 2020 under “percentage of complaints progressed per product group” life insurance sat at 2.7 percent.

Searching further it shows in that six month period, 505 life insurance complaints were progressed and 485 of these closed.

The Life Insurance Product Overview, again for the six months to 31 December 2020, shows that in the life insurance category 40.61 percent of the complaints were regarding Income Protection and:

  • 26.05 percent were regarding Term Life.
  • 11.49 percent were Total and Permanent Disability complaints
  • 9.2 percent were Trauma complaints.
Courtesy of AFCA, Datacube for six months to 31 December 2020.

The same section includes a table showing each of the financial firms complained about, the type of business, the number of complaints received and closed and how many were found to be in favour of the complainant.

On this table of the 43 financial firms named, nine are financial advisers/planning companies and, of those, only three had outcomes where the complaint was resolved in favour of the complainant.

Click here to link to AFCA’s Datacube.


  1. Seriously – just 2% of all complaints are related to Life Insurance (and the advisers linked to it?) IS that right….2%!!!!

    And of those, I wonder just what percentage are from people who tried to rort the system through no fault of the adviser.

    But no….lets continue persecute [edited] financial advisers ‘cos we’re the issue here.

  2. How does 847 out of 70,000 equal 2%? More like 1%. So misleading and doesn’t inspire much confidence. AFCA has no accountability.

  3. There were 33 complaints about advisers regarding Life insurance out of a total 33,212 complaints to AFCA. This equates to 0.1% of all complaints.

    I think we can all agree there is a major problem with risk advisers in this country which needs to be urgently addressed.

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