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UK general insurance complaints grow

Complaints made against UK general insurance intermediaries soared in the first half of this year, Financial Services Authority (FSA) figures show.

The number reached 431,897, up from 246,250 in the previous corresponding period.

Overall, complaints about general insurance and payment protection grew to more than 2.5 million, compared with 861,452 in the first half of last year.

The FSA says the rise is mainly driven by a surge in payment protection insurance complaints, with more than 2.2 million in the half-year, up 129%.

Lloyds TSB incurred the most general insurance and payment protection complaints, with 391,272. Bank of Scotland received 291,872 complaints, followed by Barclays Bank with 280,358.

Earlier this month, British Insurance Brokers’ Association CEO Eric Galbraith called for the FSA to adopt a similar approach to Canada, where banks are banned from directly selling general insurance products.

“Our sector has been tarnished by the practices of other institutions, whose main business is not insurance and which have mis-sold insurance products,” he said.

“Banks and other organisations should focus on their core business and not be allowed to directly sell general insurance.”