FOS receives record number of disputes

The Financial Ombudsman Service received a record volume of disputes last financial year, with a spike in general insurance-related disputes the primary driver.

The external dispute resolution service received 30,479 disputes in the 2016-17 financial year, a 16 per cent increase on the previous year and a new record, the FOS said in its annual review.

Of these, 22,475 disputes were accepted – an 11 per cent increase on the number of those accepted in the previous corresponding period.

“The increase in 2016-17 was driven by an increased consumer awareness and a continuation of industry-specific issues in general insurance,” the review said.

“These include a higher number of claims, organisational changes and outsourcing, all of which may have affected insurers’ internal dispute resolution.”

General insurance accounted for 38 per cent of the overall increase in disputes received by FOS, with deposit-taking disputes also seeing a “large rise” throughout the year, the review said.

Advertisement
Advertisement

While the number of disputes received by FOS grew, the number of those disputes that were resolved after then being sent back to the financial service provider’s internal dispute resolution system also grew, from 36 per cent to 43 per cent.

“This highlights the value of financial services providers considering disputes before we become involved,” the review said.

FOS receives record number of disputes
General insurance, life insurance, financial services, financial ombudsman service, FOS, dispute resolution, EDR
ifa logo

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

from the web

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.