News that nearly 30% of disputes accepted for investigation by the IFSO Scheme in the past year were about health, life, or disability insurance drew strong reader interest this week…
Nearly 30% of the record number of 600 disputes accepted for investigation by the Insurance & Financial Services Ombudsman Scheme in the year to 30 June 2025 were about health, life, or disability insurance.
The 600 disputes investigated is 25% higher than the previous year and Karen Stevens, Insurance & Financial Services Ombudsman, says the number breaks previous records, with disputes increasing steadily each year from just 285 in 2022.
In total, the IFSO Scheme received 4,293 enquiries and complaints over the past year, across insurance and financial services (also see: Financial Complaint Numbers Show No Sign of Easing).
Of the disputes IFSO investigated:
- 29% were about health, life, or disability insurance
- 67% were about general insurance, including house, contents, vehicle, and travel insurance
- 4% related to credit contracts and other financial services
IFSO says house insurance continues to be the top area for complaints, accounting for 24% of all disputes, followed by motor vehicle insurance (19%) and travel insurance (18%).
Stevens says many of these cases were resolved quickly with assistance from its frontline team.
…However, we’re seeing a growing number of complaints that remain unresolved even after going through the financial service providers’ internal processes…
“However, we’re seeing a growing number of complaints that remain unresolved even after going through the financial service providers’ internal processes. These cases escalate into disputes that require formal investigation by the IFSO Scheme.”
She adds there’s no single reason for the increase “…however the cost-of-living crisis, and expectations from consumers about what their policies should cover, particularly when premiums have gone up, may be playing a part.”