Complaints rise for ‘downright useless’ insurance policies

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Travel insurance complaints fell 61 per cent, however, after rising massively last year as planes were grounded and customers struggled to get their tickets reimbursed.

Martyn James of complaints website Resolver said: “Pandemic complaints are ‘situational’. Home insurance complaints are increasing because people are spending more time at home and things are getting damaged, we expect therefore to see an increase in complaints in this region.

“Similarly, travel insurance exploded last year as travel companies attempted to pass people on to their insurers for reimbursements.”

The FCA reported that complaints about warranty insurance policies, which cover items such as mobile phones and electronics, jumped 25% in the first half of the year, compared to the same period l last year.

Mr James said: “These policies vary in quality and some are downright rubbish – in fact there are whole swaths of the finance world wondering whether guarantees are worth it given the restrictions on their payment or not.

Other financial services have also seen an increase in complaints. Investment firms, for example, saw the number of complaints lodged against them rise from 8,970 in the first half of 2020 to 17,090 in the same period this year.

Current accounts were the most troublesome product, accounting for a quarter of all complaints. Overall, however, the 2 million complaints filed against financial services firms in the first half of 2021 was the lowest level recorded in half a decade, the FCA said.

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