Buyer complaints about dwelling and motor insurance coverage have surged because the trade faces a wave of payouts for floods, storms and different pure disasters, which has led to delays in checking out claims.
Figures from the Australian Monetary Complaints Authority (AFCA) will on Wednesday present a horror 12 months of pure disasters helped drive a pointy elevate in complaints about delays in insurance coverage claims dealing with final monetary 12 months.
Complaints flowing from pure disasters, corresponding to this 12 months’s catastrophic flooding NSW and Queensland and Victoria’s earthquake final September, greater than doubled to 1586 over the 12 months, up from 653, AFCA stated.
Complaints about dwelling constructing insurance coverage merchandise surged greater than 70 per cent within the 12 months, whereas complaints about motor cowl rose by virtually a 3rd.
AFCA stated whereas many insurers had allotted workers to cope with the inflow of pure disaster claims, this appeared to have created delays in checking out different varieties of claims. The variety of complaints about delays in claims dealing with throughout all basic insurance coverage merchandise jumped by greater than 50 per cent, to 4,804 throughout the 12 months.
The annual information confirmed banks remained essentially the most complained-about monetary companies general. It additionally underlined the rising variety of complaints about scams, together with these occurring within the nascent and unregulated cryptocurrency sector.
AFCA chief ombudsman David Locke stated insurance coverage corporations confronted challenges in resolving claims resulting from shortages of constructing supplies, components, and labour, however he was nonetheless involved by the variety of disputes making their approach to AFCA.
“We get that there’s quite a lot of points, however we actually need to perceive what the causes of the complaints are, and work with the insurers to attempt to resolve a few of these,” Locke stated.