External disputes resolution scheme Financial Services Complaints Ltd has ticked off its busiest year yet.
In its annual report, FSCL reported a 35% increase in complaints opened for investigation in the year ending June 30.
There were 245 investigations completed in the year, 29% of which were settled and 37% discontinued. Ten per cent were resolved early by the participant.
Complaints against insurers, in particular relating to travel insurance, once again made up the greatest proportion of cases investigated at just over a third. Complaints against lenders were the second-largest category at about 21%.
There were 20 complaints about insurance brokers and another 18 about financial advisers. Sixty-five cases were about travel insurance, six about pet insurance, four about health insurance, two about business interruption insurance and two about marine insurance.
Chief executive Susan Taylor said the rise in travel insurance complaints correlated with more Kiwis travelling overseas and more travel insurance being sold.
“We think the overall increase in complaints partly reflects the growing consumer awareness of the dispute resolution services available along with the extra resources we have put into publicising our services and working with consumer advocates. However, there is still room for improvement.”
FSCL submitted during the year on regulations under the Financial Services Law Amendment Bill, that it should be mandatory for advisers to tell their clients about their external dispute resolution scheme, at the time that a complaint arises.
“The best way for a consumer to find out about us when they need us is through their financial services provider.”