Complaints about general insurance products and services in Australia remained persistently high during 2025-26, according to preliminary data released by the Australian Financial Complaints Authority (AFCA).
AFCA’s Chief Customer Officer Deborah Jenkins in a media release on 4 August 2026 said despite the persistently high complaints regarding general insurers, the data shows early resolution remains an important feature of the system, with 43% of complaints resolved before progressing through AFCA's formal decisions-making process.
Overall, the three most complained about financial products in 2025-26 were personal transaction accounts, motor vehicle insurance and credit cards. The top three issues were delay in claim handling, service quality and claim rejection.
Ms Jenkins said, “There is still opportunity to reduce overall complaint volumes, with comprehensive vehicle insurance again the most complained about insurance product, and rejection of claim complaints increasing by 47% this year.
Australians in total lodged a record 119,949 complaints with AFCA in 2025–26, which is the highest number on record and the third consecutive year complaints have exceeded 100,000. Ms Jenkins said three years of more than 100,000 complaints highlights the challenges many consumers continue to face in a difficult economic environment.
"These numbers highlight the impact that ongoing cost-of-living challenges and economic uncertainty are having on consumers, and the flow-on effects these conditions can have across the financial system,” Ms Jenkins said.
"Every complaint represents someone's experience, and collectively they provide a view of where consumers are struggling. By working with us and acting on these insights, firms can help prevent recurring issues that lead to complaints with AFCA,” the Chief Customer Officer said.
While complaint volumes increased across all areas during 2025-26, the largest growth was driven by major investment collapses and rising superannuation disputes. AFCA’s preliminary data snapshot as at June 30 showed:
- Banking and finance 66,971 complaints (up 23%)
- General insurance 36,022 complaints (up 5%)
- Superannuation 8,755 complaints (up 42%)
- Investments and advice 6,542 complaints (up 56%)
- Life insurance 1,561 complaints (up 3%)
Investments and advice complaints increased by 56 per cent, primarily driven by the Shield Master Fund and First Guardian collapses. Complaints alleging failure to act in the client’s best interest remain the top issue with a 65 per cent increase on last year, up to 2,081.