Try to settle disputes in-house, says busy ombudsman
New disputes before the Financial Ombudsman Service (FOS) jumped more than 40% in the first five months of this year, prompting a plea to companies to beef up their internal dispute resolution systems.
FOS logged almost 8000 new disputes from January to May, up 44% on the corresponding period last year.
More than 1000 new disputes arose in general insurance group (up 6%), and 1000 in the investments, life insurance and superannuation group (up 72%).
Close to 6000 new disputes were banking and finance related (up 51%).
Chief Ombudsman Colin Neave says significant rises were recorded for home insurance (both building and contents), as well as for financial planning, managed investments and housing finance.
A spokesman told insuranceNEWS.com.au home building insurance complaints mainly related to weather-related issues (e.g. storms and floods in NSW and Queensland). Life insurance stand-offs mainly related to denial of claim.
Mr Neave appealed for member companies to do their best to “minimise the number of complaints which come to us”.
“I would again ask all financial services providers to continue to invest in your staff and your own internal dispute resolution systems so that you can respond to complaints effectively,” he said.
In June insuranceNEWS.com.au reported FOS had boosted its workforce by about 25% to just over 200 in the previous nine months in response to an escalating number of disputes.
FOS logged almost 8000 new disputes from January to May, up 44% on the corresponding period last year.
More than 1000 new disputes arose in general insurance group (up 6%), and 1000 in the investments, life insurance and superannuation group (up 72%).
Close to 6000 new disputes were banking and finance related (up 51%).
Chief Ombudsman Colin Neave says significant rises were recorded for home insurance (both building and contents), as well as for financial planning, managed investments and housing finance.
A spokesman told insuranceNEWS.com.au home building insurance complaints mainly related to weather-related issues (e.g. storms and floods in NSW and Queensland). Life insurance stand-offs mainly related to denial of claim.
Mr Neave appealed for member companies to do their best to “minimise the number of complaints which come to us”.
“I would again ask all financial services providers to continue to invest in your staff and your own internal dispute resolution systems so that you can respond to complaints effectively,” he said.
In June insuranceNEWS.com.au reported FOS had boosted its workforce by about 25% to just over 200 in the previous nine months in response to an escalating number of disputes.