The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) accepted a record number of 600 disputes for investigation in the year from 1 July 2024 to 30 June 2025. This translates to a 25% increase from the previous year.
According to a media release by the IFSO Scheme office the present numbers break the previous records. The disputes registered in 2022 were just 285 and have been steadily rising since then. The media release said the IFSO Scheme in total received 4293 enquiries and complaints over the past year across insurance and financial services.
IFSO Scheme Ombudsman Karen Stevens said, “Many of these cases were resolved quickly with assistance from our frontline team. However, we are 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.”
Ms Stevens said there is no single reason for the increase, however the cost-of-living crisis, and expectations of the consumers about what their policies should cover, particularly when premiums have gone up, may be playing a part.
Of the disputes investigated, 67% were about general insurance, including house, contents, vehicle, and travel insurance. 29% were about health, life, or disability insurance, and 4% related to credit contracts and other financial services.
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%).
Ms Stevens said the IFSO Scheme can only consider whether the insurer had correctly applied the terms and conditions of the policy to the claim.
She said, “It is important to understand that insurers rely on evidence and if you disagree with a claim decision, you must prove that there was damage missed, or that the settlement is unreasonable.”
The IFSO Scheme is independent, fair and free for consumers, helping resolve complaints about insurance and financial services.