The UK Financial Ombudsman Service has been forced to hire more staff and increase its fees to cope with a 92% increase in new cases last financial year.

Mis-selling of payment protection insurance by banks comprised 74% of the 508,881 new cases received.

About 7% of cases concerned other forms of insurance, the number of which increased 20%.

There was a 50% increase in pet insurance complaints, 60% more building warranty cases, an 85% rise in private health insurance disputes and a 24% increase in complaints involving commercial vehicles and property. Home and contents disputes fell.

About 47% of motor complaints were settled in favour of the consumer – a higher proportion than in other dispute areas.

The ombudsman service says this reflects tougher economic times but also “the increased number of entrenched disputes, where neither side is prepared to reconsider their position or agree to informal mediation”.

Disputes about non-disclosure increased 60%. Many could have been avoided if insurers had asked clearer questions when consumers applied for cover, the service says.

Travel insurance cases increased 13%, with a significant number from people buying cover online.

The annual report notes commercial claims-management companies brought 45% of new cases.

Chairman Sir Nicholas Montagu says firmer regulation of companies at the “cowboy end” of the industry is needed.