There is no need to create a new dispute resolution body for the financial services sector, the Insurance Council of Australia (ICA) says.

It says efforts should instead be directed towards improving the current external dispute resolution (EDR) and complaints network, overseen by the Financial Ombudsman Service (FOS).

ICA’s submission to a government review says the framework could be improved by setting up a triage service to provide a single point of entry for consumers with financial services disputes, and by giving FOS ample staff resources to handle insurance disputes.

“The existing EDR framework for consumers of general insurance products is operating effectively and is continually subject to process improvements and stakeholder consultation,” CEO Rob Whelan says in the submission. “Nevertheless, improvements can be made.”

The Government is reviewing the EDR and complaints network to determine its effectiveness, and the expert panel appointed to oversee the review will issue a final report by the end of next March.

General insurance disputes accounted for about 31% of cases accepted by FOS last financial year, ICA says.

Dispute numbers usually increase following a major weather event or natural disaster.

“Insurers and ICA have measures in place to ensure industry responds to a catastrophe in an efficient and compassionate manner,” Mr Whelan said.

“Nonetheless, severe weather events, increasing consumer awareness and other factors could lead to further spikes and fluctuations in general insurance dispute numbers. We would welcome FOS being adequately resourced to deal with these changes.”