General insurance complaints to the Financial Ombudsman Service (FOS) are continuing to rise, even with flood disputes removed from the figures.

General Insurance Ombudsman John Price says the upward trend is the “elephant in the closet” and is clearly not driven by natural disasters.

He says FOS is working to identify the causes. “We do not have an exact handle on it but we feel awareness of FOS within the community is continuing to grow,” he told the service’s national conference last week.

Mr Price says accessibility to FOS has improved, with 70% of disputes lodged online in the last quarter.

The entire service, covering banking, investment, credit and financial advisers, has received more complaints following the global financial crisis. Mr Price says the weakening of consumers’ finances may have made them more willing to lodge disputes.

“The rise in social media has increased community awareness and communication about consumer issues.”

He says the increase in disputes is unsustainable and, while most are about claims decisions, there are also disputes about service and delays in settling matters.

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