Insurance Complaints Surge: Ombudsman to Meet Sector Amid Doubling in Cases

Insurance Complaints Surge, Prompting Ombudsman Review

Complaints against insurance providers are on the rise, with a significant increase recorded in recent years. The Financial Services and Pensions Ombudsman (FSPO) received 7,004 complaints in 2025, a record high, and closed 6,282 cases – a 6% increase from 2024 and a 34% jump since 2022. This surge has prompted the ombudsman, Liam Sloyan, to schedule a meeting with the insurance sector to discuss the escalating concerns.

Approximately one-third of all complaints handled by the FSPO last year related to insurance, totaling 2,142 – an 18% increase compared to the previous year. The number of insurance complaints has effectively doubled since 2022, starting from 1,129 complaints.

While the FSPO provides a free, independent dispute resolution service for consumers and small businesses, the increasing volume of complaints raises questions about industry practices. Sloyan emphasized the need for the industry to address the growing dissatisfaction, stating, “This level of increase should be of concern to the industry and I will engage with the sector on this matter.”

Motor insurance generated the highest number of complaints, followed by private health insurance and travel insurance. A significant portion – over a quarter – of all insurance complaints centered on issues with claim handling, with the rejection of claims being the next most frequent grievance. Customer service, maladministration, and the refusal of service also remained prominent concerns in 2025, mirroring trends observed in 2024.

The FSPO possesses substantial authority to address these complaints, with the power to direct firms to rectify problematic conduct and to award compensation to complainants, up to a maximum of €500,000. Despite these powers, the ombudsman’s office has faced criticism regarding the speed at which it resolves complaints, and calls for operational improvements have been made, particularly concerning the rejection rate of consumer claims.

Interestingly, the vast majority – nine out of ten – of closed complaints in 2025 were resolved through early resolution and informal processes, avoiding the need for formal investigations or legally binding decisions. This suggests that many issues are being addressed proactively before escalating into more complex disputes.

Banking complaints also represent a substantial portion of the FSPO’s workload, with 3,802 complaints received in 2025, accounting for 54% of all complaints. However, complaints related to tracker mortgages continue to decline, with only 11 new complaints received in 2025 and 143 closed cases. A growing trend within banking complaints involves disputed transactions, which have increased by 28% since 2024. These disputes encompass fraudulent activity, inaccurate account information, security failures, non-receipt of funds, and unauthorized withdrawals.

The rising number of complaints across various insurance and banking sectors underscores a broader trend of consumer dissatisfaction with financial service providers. While the FSPO is actively working to address these concerns, the industry itself will need to take proactive steps to improve its practices and restore consumer trust. The upcoming meeting between the ombudsman and industry representatives will be a crucial opportunity to discuss potential solutions and prevent further escalation of complaints.