The Financial Ombudsman Service (FOS) says it has approached a general insurer following a “large volume of complaints” from policyholders whose claims were declined.

FOS has requested information contained in letters sent to customers regarding allegations of fraud.

It also says it has contacted a life insurer, seeking further information about sales practices in remote indigenous communities.

FOS says concerns have been passed to its systemic issues team regarding “mis-selling, the ability to cancel policies and also the [financial services provider’s] apparent failure to recognise the applicant’s appointed representative”.