The number of disputes about general insurance products and services grew 31% to 30,171 in the last financial year, according to the industry’s Code Governance Committee.

This was due to a 32% jump in retail insurance disputes to 28,587, while wholesale insurance disputes make up the remaining 1584. Lodged retail claims increased 2% to nearly 3.76 million during the period.

Retail insurance comprises motor, home, personal and domestic property, travel, consumer credit, residential strata, and sickness and accident.

Of the 27,071 disputes reviewed by code subscribers – the 49 general insurers that have agreed to work under the guidelines – 71% of outcomes went against the consumer.

The number of claims lodged by consumers remained steady at 4.26 million, but the number of declined claims grew 12% to 148,697 and withdrawn claims increased 29% to 287,203.

“While code subscribers have largely attributed increases in withdrawn claims to…enhanced collection and reporting methodologies, the committee is concerned they may also point to gaps in consumers’ understanding of the insurance products they are purchasing,” committee chairman Lynelle Briggs said.

“Code subscribers have also given us limited insights into the factors underlying increases in declined claims, referring to strong business growth as the main reason why they are declining more claims.

“However, the committee does not believe this adequately explains the growth in declined claims frequency, given that the number of retail insurance claims grew only slightly.”