The UK’s Financial Ombudsman Service saw a rise of 9.5% in the number of new complaints submitted to it in the second half of 2022. With the FCA currently pushing the implementation of Consumer Duty, the rise in complaints is cause for concern.

A total of 79,921 new complaints were received in Q2 2022, up from 72,978 in Q1. The average rate of complaints upheld on behalf of consumers across all products was 34%, down from 37% in the first half of the year.

Most dissatisfaction was registered by customers in the banking and credit sector, followed by the general insurance sector, with complaints up 14% and 10.4% respectively. Complaints were submitted about 220 separate firms.

Lack of clarity for consumers

The growth in insurance-related complaints being referred to the ombudsman is something that should be a real worry, Matt Scott of Insurance Datalabs told Insurance Times. The co-founder of the insurance benchmarking site said that far too many consumers were not clear about what was and what wasn’t covered by their policies. This was inevitably going to lead to a poor customer service outcome.

The FCA’s Consumer Duty is intended to sharpen the focus on outcomes for consumers, and the regulator has observed that “Some firms present information in a way that is misleading or difficult to understand, which makes it harder for consumers to make a timely and informed decision.”