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AFCA flags ‘new normal’ as complaints rise 20% 

The Australian Financial Complaints Authority says the number of general insurance complaints soared 20% to 28,698 last year, and there’s no sign of the trend stopping.

“It has clearly been a difficult couple of years,” Lead Ombudsman Insurance Emma Curtis told a members’ forum.

“Multiple natural disasters” and “resourcing and supply issues” have taken their toll, but the authority says complaints are not just related to catastrophes.

“We’re seeing elevated complaint rates across the range of general insurance products and issues,” Ms Curtis said. “[Complaint numbers] had gone up significantly the year before as well, so this looks like the new normal and we’re still seeing ongoing increases in those complaint volumes.”

Chief Ombudsman and CEO David Locke says insurers must do more to improve internal dispute resolution so fewer simple complaints end up with the authority.

See Analysis.