The number of disputes received by the Financial Ombudsman Service (FOS) fell 2% to 31,680 last financial year, according to its annual report.

The drop was driven by a 12% reduction in general insurance disputes, with 6704 accepted compared with 7581 the previous year.

The report says increased take-up of flood insurance, greater consumer awareness of such cover and improved industry practices are key contributors.

However, disputes between general insurance brokers and their customers increased to 256 from 195, with denial of claims the main issue.

Overall, the number of disputes accepted in the year fell 3% to 23,454.

Half of all disputes concerned credit, with general insurance accounting for 27% and life insurance 5%.

FOS closed 33,450 disputes, down 1% on the previous year, and 54 systemic issues were resolved.

There were 232 investigations into alleged breaches of industry codes of practice, with 84 confirmed.

“FOS continues to have a strong focus on the identification and resolution of systemic issues with our members,” Chief Ombudsman Shane Tregillis said.

“There is also more to be done to improve how quickly we resolve disputes. This has been a key focus of our efforts over the past year.”