The Australian Financial Complaints Authority (AFCA) says life insurance complaints totalled 1898 in the year to June, down by almost a quarter from 2482 a year earlier. 

However, delays in claim handling was a significant issue in superannuation, rising 136%, including for payments of death benefits and total and permanent disability insurance claims. 

“We urge fund trustees to closely track the progress of claims and to review outcomes for members. Access to this money is vital for people who have lost a loved one or are unable to work. Unnecessary delays and poor communication are distressing,” AFCA said. 

Complaints across all financial services rose to a record 96,987 in the year. 

Disputes in most segments jumped, to be up 50% in general insurance, 27% in banking and finance, 51% in investments and advice, and 32% in superannuation.  

Claim delays were the top cause of disputes escalated to AFCA, with 10,996 lodged, up 76% from a year earlier. There were also 6266 complaints about claim amounts, and 4851 about claim denials due to exclusions. 

AFCA Chief Ombudsman and CEO David Locke is urging insurers to “take the necessary steps” to ensure fewer policyholders have to take a complaint to AFCA.