Speaking at the Treasury Select Committee last week, Financial Ombudsman Chief Executive Caroline Wayman, hit out at insurance providers, stating that the uphold rates from compliants against insurers is “outrageous”. This is off the back of the latest figures released by the FOS, which show that the number of complaints it received is down overall, due mainly to a drop in payment protection insurance (PPI) complaints, but the uphold rates remain exceptionally high.
The figures show that the FOS upheld complaints against insurers in over half of the cases, even after the firms had been given the opportunity to put matters right.
Wayman was also unimpressed with insurers claims that any and all complaints made against them that were not upheld served as proof that these complaints were frivolous, stating “Not that long ago, I was at an event where an insurer was saying it is outrageous because half the cases are found for us, so that means in half the cases the claims are frivolous. No, it means that we found in their favour by the time it came to us.
She went on to say, “I actually think it is a little bit outrageous that in a market where nothing much is happening, still in half the cases we are needing to say ‘you have done that wrong’ even after they have had the chance to put it right.
Adding “For a case to be frivolous and vexatious is a pretty high bar. It is not that you don’t win, it’s that you just don’t have a case and the courts have a similar test.”