AFCA reveals cost of dispute intervention
The Australian Financial Complaints Authority (AFCA) received 7114 complaints against general insurers in the second half of last year, while $23.9 million in compensation was paid to complainants.
Data published on the AFCA Datacube shows 3127 complaints were resolved when referred back to the insurer. The six-month report, which also includes handling activity for previously received complaints, shows 4055 were progressed during the period and 3807 were closed at case management.
Home building cover was the most complained-about insurance product in the second half of last year, with 1450 progressed.
The number represented 32.8% of general insurance complaints and 7.2% of complaints across all financial product groups.
General insurers were the second-most complained about financial services sector after the banks, which totalled 14,096 complaints. These were followed by credit providers 4643) and superannuation funds (2787).
AFCA launched the Datacube last year to assist consumers and boost transparency following the Hayne royal commission.
“Rebuilding trust in the Australian financial services will be a long journey and one that requires effort across the entire sector,” AFCA COO Justin Untersteiner said.
“Transparency is key in this transformation and we have made significant changes in the way we report our data and decisions to make them more accessible to the public.”
The data can be accessed here.