Financial Services Ombudsman (FOS), Natalie Ceeney, has warned insurers that things are “going wrong” in the sector.
Speaking at a conference hosted by the Association of British Insurers, Ms Ceeney explained: “Over the last three years, leaving PPI and bank charges to one side, the ombudsman service has seen a gradual reduction in complaints across the banking sector and IFAs.
“During the same period the FOS has seen a rise in complaints about insurers. And, in the cases investigated, has been finding against insurers more frequently.”
Ms Ceeney summed up: “In short, we’re concerned that we’re now seeing more going wrong in insurance than we were a few years ago. And that when things are going wrong, they’re not being put right sufficiently quickly or sufficiently well.”
She went on to illustrate the point with the case of an elderly lady, driving home on her own, who hit a badger on a country lane at night.
She didn’t have a mobile phone, and as her car seemed to be driving and handling normally, she carried on.
When, several miles later, her car started making a strange noise, she drove on until she’d found a safe place to pull over.
Her insurer refused to pay out in full, as she hadn’t stopped her car when she first hit the animal.