Time for insurers to treat customer complaints properly

Financial Counselling Australia (FCA) has welcomed an ASIC report calling on Australia’s insurers to improve their complaints handling processes.  

“We are disappointed but not surprised. The findings from ASIC’s review of insurance complaints handling mirrors the experience of many financial counsellors supporting their clients through the claims process,” said Vicki Staff, FCA’s insurance expert.  

ASIC’s review of the Internal Dispute Resolution (IDR) practices of 11 general insurers highlighted shortcomings in several areas, including the failure to identify complaints and systemic issues, as well as inadequate communications to customers. 

“This is simply not good enough. It’s time for all insurers to do the right thing and treat their customers with the respect they deserve when complaints are made,” Ms Staff said. 

 “When financial counsellors speak to the community about insurance, we tell people that if you are unhappy with your insurer, make a complaint. The problem is this report shows that if you do complain, your complaint may go nowhere,” she said. 

“Our advice is that if you do complain, make sure you are very, very clear in the language you use. Say something like ‘I want to make a formal complaint’, because if you are not direct, they may not pick up on the cues.” 

 Many financial counsellors have become so frustrated with insurance IDR they are lodging complaints with AFCA at the same time as lodging a complaint with the insurer.   

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