Travel insurance complaints hit record high – what were most disputes about in 2023-24? – Which? News

Complaints about travel insurance have reached their highest level since the pandemic, according to new annual data from the Financial Ombudsman Service (FOS).

The FOS, a free service set up to resolve customer complaints about financial businesses, reported a 19% year-on-year rise in the number of grievances it received about this type of cover, with the number of complaints upheld by the ombudsman also up.

Here, Which? digs into the data to find out what people’s main gripes were over the last year and how the FOS can help you if you have an unresolved dispute.

Travel insurance complaints hit pre-pandemic high

Out of the 198,798 new complaints the FOS received between 1 April 2023 and 31 March 2024, there was a combined total of 4,466 complaints about travel insurance. That’s up from 3,745 in 2022-23.

It hasn’t been this high since 2020-21, when complaints swelled to 8,175 due to the disruption caused by the Covid pandemic. 

Not counting that year, complaints are now at their highest level within the last decade. In 2019-20 the FOS received just 2,510 new grievances about the product – 78% less than in 2023-24.

• Find out more: best travel insurance 2024

Almost half of firms found at fault

The figures show that not only are more people making more complaints, but firms are increasingly being found to be in the wrong.  

Travel insurance complaints upheld by the FOS have rocketed to 44% in 2023-24, up from 36% the previous year. That’s even higher than during the pandemic in 2020-21, when the uphold rate was 38%.

It comes after the Financial Conduct Authority (FCA) introduced new Consumer Duty rules last July, requiring firms to put customers’ needs first and offer them ‘fair value’.

Abby Thomas, Chief Executive and Chief Ombudsman of the FOS, said: ‘It’s concerning to see so many people dissatisfied with their insurance provider. That’s why it’s so important firms take the time to explain terms, treat people fairly, and ensure everyone understands their policy.

‘If people aren’t happy with how they have been treated they should contact our free, independent service and we’ll investigate.’

What were most complaints about?

The majority of complaints were from people unhappy that their claim had been declined. Indeed, the FCA’s most recent report, based on 2022 data, found travel insurers had one of the lowest claims acceptance rates out of all insurance areas.

The FOS has also noticed a rise in travel insurance customers complaining their claim was rejected because medical conditions had not been properly disclosed. Complaints about the level of emergency assistance available to travellers after falling ill abroad are also increasingly common. Other grumbles were about delayed or missed flights, as well as lost and stolen luggage.

Which? analysis carried out in May 2024 suggests interactions with travel insurers have become increasingly stressful in recent years. References to ‘distress and inconvenience’ in complaints upheld by the FOS have increased over a five-year period to reach a peak in 2023. Our investigation between last October and December found it was cited in more than two-thirds of the upheld cases we analysed. 

• Find out more: how distress and inconvenience has spiked insurance complaints

How to complain to the FOS

Before you take any complaint to the FOS, you should always try to resolve the dispute with the company first. Follow its complaints procedure, and clearly explain the problem and what you want done about it.

If you’ve had no joy after eight weeks, then you should ask the company for a ‘final response’ to show you’ve done all you can to resolve the complaint. If the firm fails to respond within a couple of weeks, then the next step is to go to the FOS. 

Making a complaint to the FOS is pretty simple – just visit the ombudsman’s website and fill in a short online form, including as much evidence as you can.

After considering all the evidence, the FOS will write to you and the company with the decision and if there is to be an ‘award’. If your complaint is upheld, then this letter will include details of what the company must do to put things right.

While the award is legally binding for the company, that’s not the case for the customer. So if you choose not to accept the ombudsman’s decision, you are free to take legal action through the courts instead.

• Find out more: how to complain to the Financial Ombudsman Service

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