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Most complained-about insurance companies revealed

Financial Ombudsman Service releases new complaints data

woman on phone

Complaints to the ombudsman rose by 3% in the six months to 30 June 2016

UK Insurance (UKI) had the most complaints against it for general insurance in the first half of 2016, according to the latest data from the Financial Ombudsman Service (FOS).

UKI, which underwrites the likes of Direct Line, Churchill and Nationwide, had 1,307 customers complain to the ombudsman about its general insurance policies in the six months to 30 June 2016.

Aviva was second with 639 new cases while Ageas, Axa and Admiral completed the top five for general insurance with 593, 516 and 484 new cases respectively.

General insurance includes house, car and travel policies, but excludes payment protection insurance (PPI).

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Most complained-about banks

Lloyds topped the table for overall complaints, having 22,241 cases received against it, while Bank of Scotland (22,090 new cases) ranked second and Barclays (18,603 new cases) placed third. 

The ombudsman saw an increase of 3% in new cases overall in the first half of 2016 (169,132 cases). PPI was the most complained-about product, making up 54% of the total complaints (91,381 new cases).

For complaints about financial products other than PPI, the number has increased by 8% to 77,751. This includes a doubling in the number of complaints about payday lenders, compared to the last six months of 2015.

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Complaints are ‘broadly levelling off’ 

The average uphold rate (where the ombudsman found in the consumer’s favour) over the six-month period was 48% – ranging from 3% to 92% across the individual businesses.

Chief ombudsman, Caroline Wayman, said: ‘The data we have published about complaints over the last decade or so helps to illustrate a period that’s been challenging and volatile for many financial businesses.

‘But the current signs are that complaints are now broadly levelling off and moving onto a more even keel.’

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