The Financial Ombudsman Service (FOS) received about 13,200 general insurance disputes last financial year, up from 10,588 the previous year.

It was the fourth consecutive year of increase, FOS says in response to a request for information from the royal commission on financial services misconduct.

The service says the number of disputes accepted has increased due to industry issues including higher claims numbers and organisational changes.

“These issues may have had an impact on [insurers’] ability to meet community standards and expectations of the quality and effectiveness of their [internal dispute] systems and processes.”

Personal lines insurance, including home, contents and motor vehicle, accounted for most of the disputes.

Insurer decisions such as denial of claims or payout offers below what a consumer expects are the main issues represented in these disputes.

Disputes tend to spike after natural disasters, as in 2010 and 2011, when confusion over the extent of cover due to definitions for floods and storms was the main cause, FOS says.

The introduction in June 2012 of a standard definition of flood, and subsequent changes to policies, have reduced consumer confusion.