Complaints about insurance have been climbing sharply in recent years, with many consumers feeling let down by rejected claims and frustrating delays.
However, you do not have to accept an unfair decision. Understanding your rights and following the correct complaints process can significantly improve your chances of achieving a fair outcome. This article explores the most common complaints regarding insurance, and also how to fight them yourself or with help.
Key summary:
- Insurance complaints in the UK are rising, with large volumes reaching the Financial Ombudsman Service (FOS), and a significant proportion being upheld- suggesting many consumers have arguable grounds to challenge insurer decisions.
- The most common disputes involve claims handling, especially rejected/declined claims, long delays and poor communication, and disagreements over settlement amounts (e.g., vehicle valuations, repair costs, underinsurance).
- Renewal premium increases remain a frequent complaint, particularly where customers feel penalised despite having made no claims (including concerns linked to “price walking”).
- Non-disclosure/misrepresentation is a key rejection ground, but the article notes consumers have protections (including under the Consumer Insurance (Disclosure and Representations) Act 2012) and should assess whether insurer questions were clear and whether their answers were reasonable.
- To fight back, follow the complaints process and build evidence: complain to the insurer in writing, escalate to the FOS if unresolved within 8 weeks (and within 6 months of the final response), and consider legal action only as a last resort- especially for high-value disputes or if dissatisfied with the FOS outcome.
How big is the problem?
The scale of insurance complaints in the UK is significant. In 2024/25, the Financial Ombudsman Service received 45,606 new insurance complaints, with an overall uphold rate of 38% for insurance cases. Across all financial products, complaints reached their highest level for six years.
What is also interesting is that the FOS finds in favour of the complainant in around a third to half of cases. These figures suggest that many policyholders have legitimate grievances and that insurers are frequently getting decisions wrong.
The Financial Conduct Authority has also noted a rise in complaints reported directly to insurers. The FCA has repeatedly emphasised the importance of treating customers fairly and has taken action against firms that fall short.
Most common insurance complaints
While insurance complaints span a wide range of issues, most relate to how claims are handled. Policyholders typically encounter problems when claims are rejected, when settlements are disputed, or when insurers take far too long to resolve matters. Understanding the most common complaint types can help you recognise whether your situation warrants a formal challenge. Below are some of the most common disputes.
Rejected or declined claims
Claim rejections are by far the most common trigger for complaints. Having a claim declined, especially when you believed you were covered, can be extremely frustrating. Insurers reject claims for various reasons, some of which are summarised below.
Another frequent ground for rejection includes non-disclosure, where the insurer claims you failed to provide accurate information when taking out the policy. Claims excluded from the policy are also very common, with insurers pointing to specific terms that they say rule out cover for your particular circumstances. Furthermore, some rejections are based on allegations that the policyholder failed to take reasonable care to prevent loss or damage.
While some rejections are justified, many are not, leading to the insurer unfairly withholding a payout to the consumer. Often, insurers interpret policy wording too narrowly or apply exclusions in ways that were never clearly communicated to the customer. If your claim has been rejected, it is always worth examining the reasons carefully and considering whether a challenge is reasonable.
Claim delays and poor communication
Even when a claim is ultimately accepted, the process of getting there can be deeply frustrating. Complaints about delays have surged in recent years, driven partly by the increase in complaints and also by poor complaint management by the insurer.
Policyholders often have their complaints delayed by weeks or even months, with no meaningful updates on their claim’s progress. Some experience repeated requests for additional documentation, which creates the impression that the insurer is deliberately stalling the progress.
Poor communication often makes these problems worse. When insurers fail to respond to calls and emails, or when different staff members give conflicting information, the experience becomes even more stressful. The FCA requires insurers to handle claims promptly and keep customers informed, but the rise in complaints suggests these standards are not being met.
Disputes over settlement amounts
Receiving a settlement offer well below the correct amount is another major reason for complaints. This issue arises most commonly in motor insurance, where disagreements over vehicle valuations can leave policyholders significantly out of pocket.
When a car is written off, the insurer pays out the market value rather than what you originally paid or what it would cost to buy an equivalent replacement. Valuation disputes are extremely common, with many policyholders feeling that the figures provided by insurers are drastically low.
Underinsurance is another problematic area. If your sum insured does not reflect the rebuilding cost of your home or the value of your contents, the insurer may reduce your payout proportionately, coming as a big surprise to policyholders.
Disputes also arise when repair cost estimates differ between the policyholder and the insurer. If your own builder or mechanic quotes significantly more than the insurer is prepared to pay, resolving the gap can become problematic.
Unfair premium Increases at renewal
Policyholders often challenge renewal quotes that have seen a fast increase, especially when they have made no claims during the policy year.
The practice of price walking, where insurers increase prices for loyal customers while offering lower rates to new customers, has caused issues with regulators. Although new rules have been introduced to address the worst excesses, many consumers still feel they are being treated unfairly at renewal time.
Non-disclosure and misrepresentation issues
Non-disclosure is one of the most contentious grounds for claim rejection. Insurers sometimes refuse to pay out on the basis that the policyholder failed to disclose relevant information when applying for cover.
The Consumer Insurance Act 2012 provides important protections in this area. Under the Act, consumers are only required to take reasonable care not to make misrepresentations. The burden falls on the insurer to ask clear questions, and the consumer’s answers must be considered in light of what a reasonable person in their position would have understood.
If your claim has been rejected on non-disclosure grounds, it is worth examining whether the insurer’s questions were clear and whether your answers were reasonable in the circumstances. You can also find out about our legal services if you need help understanding your options.
How to complain to your insurer
If you believe your insurer has treated you unfairly, the first step is to raise a complaint with them. You can start informally contacting them to raise your concerns, but if this does not resolve matters, you should submit a formal written complaint. Explain what has gone wrong, provide any supporting evidence, and state clearly what outcome you are seeking.
Insurers must acknowledge your complaint promptly and provide a final response within eight weeks. If they cannot resolve the matter within this timeframe, they must explain why and tell you that you can refer the complaint to the financial ombudsman service. You can read more about making a Financial Ombudsman complaint.
You must refer your complaint to the FOS within six months of receiving the insurer’s final response. The service will review the evidence from both sides and make a decision based on what is fair and reasonable in the circumstances. The FOS can currently award compensation of up to £455,000 for complaints, where the business is required to pay.
A Wealth Recovery Solicitors manager says: “Insurance disputes often turn on the wording of the policy, the evidence provided, and whether the insurer has handled the claim fairly. A clear written complaint with supporting documents can make a significant difference when challenging an unfair decision.”
Escalating to the Financial Ombudsman
If your insurer does not resolve your complaint within eight weeks, or if you are unhappy with its final response, you may be able to escalate the complaint to the Financial Ombudsman Service.
The Financial Ombudsman Service is free for consumers and independent of the insurer. It will review the evidence from both sides and decide what is fair and reasonable in the circumstances.
If the Financial Ombudsman Service upholds your complaint, it can require the insurer to put things right. This may include paying the claim, increasing the settlement, paying interest, correcting records, or awarding compensation. You must usually refer your complaint to the Financial Ombudsman Service within six months of receiving the insurer’s final response.
The current award limit depends on when the act or omission happened and when the complaint was referred. For complaints about acts or omissions by firms on or after 1 April 2019, the limit is currently £455,000.
When to consider legal action
Court action is generally a last resort; however may be appropriate in certain circumstances. If your dispute involves amounts exceeding the FOS compensation limit, or if you are dissatisfied with the FOS decision, pursuing a claim through the courts might be the next step.
Legal action should not be undertaken lightly. It can be costly, time-consuming, and uncertain in outcome. Before proceeding, you should always seek specialist legal advice to assess the merits of your case and understand the potential risks. For guidance on choosing between court and ADR options, read our guide to deciding which route may suit your circumstances.
Tips for a stronger complaint
Building a strong complaint takes time and attention to detail- start by reviewing your policy wording carefully, understanding exactly what your policy covers, and what it excludes, which will help you assess whether the insurer’s decision stands up to scrutiny.
Furthermore, you need to ensure you keep all evidence, such as photographs, receipts, correspondence, and any other relevant records. If you have suffered a significant loss, consider obtaining an independent report from a loss assessor or surveyor- this can provide valuable evidence to support your case.
When communicating with your insurer, remain factual and avoid emotional language. Set out your concerns clearly, reference specific policy terms where relevant, and explain why you believe the insurer’s decision is wrong. Be persistent but professional.
Finally, always state clearly what outcome you want. This could be seeking a claim to be paid, increased, or compensation for the distress caused by poor handling.
Need help fighting an insurance dispute?
Challenging an insurer alone can feel scary, particularly when dealing with complex policy wording or large sums of money. In these instances, professional legal support can make a real difference to your prospects of success, helping you navigate the complaints process effectively and present your case as persuasively as possible.
If you are struggling with an unfair insurance decision, Wealth Recovery Solicitors can provide expert guidance tailored to your circumstances. Our team has extensive experience in challenging insurers and securing fair outcomes for policyholders. Contact us today to speak to our specialist team today and find out how we can help.
Frequently Asked Questions
Can I complain if my premium increased unfairly?
Yes, you can complain about premium increases that seem unjustified or disproportionate. While insurers have some discretion in setting prices, they must treat customers fairly. If your renewal quote has increased significantly without a clear reason, raise a complaint and ask for an explanation.
Does the FOS charge a fee for complaints?
No, the Financial Ombudsman Service is completely free for consumers. You do not have to pay anything to have your complaint reviewed and decided.
How long does a Financial Ombudsman case take?
Timescales vary depending on the complexity of the case and the FOS’s current workload. Some straightforward cases may be resolved within a few months, while more complex disputes can take a year or longer.
Can I still complain after accepting a settlement?
Generally, accepting a settlement is treated as a full and final resolution of your claim, which can limit your ability to complain afterwards. However, if new information comes to light, or if you feel you were pressured into accepting an unfair offer, it may still be worth raising a complaint to explore your options.
What evidence should I gather before complaining?
Collect all relevant documentation, including your policy documents, claim correspondence, photographs of damage, repair estimates, receipts, and records of phone calls. Independent reports from loss assessors or other experts can also strengthen your case significantly.