“Very stressful period” for insurers as ombudsman receives over 3,500 complaints

The Association of British Insurers has responded to news that over 3,500 complaints have been made in connection with firms’ handling of the coronavirus outbreak.

Thousands of complaints have been raised to the financial ombudsman service relating to the COVID-19 pandemic.

Complaints from small businesses now outnumber the total from the last financial year, while holidaymakers and those planning events such as weddings and concerts are among the complaints from consumers.

A spokesperson for the Association of British Insurers commented: “Despite the unprecedented operational challenges, insurers have been delivering to customers during a very stressful period.

“This includes expecting to pay a record £275m in travel cancellations under travel insurance, £900m to those firms covered for Covid-19, as well as settling £2bn in motor claims during the second quarter of the year.

“The priority for insurers remains to ensure that claims are dealt with as quickly and efficiently as possible.”

Caroline Wayman, chief ombudsman and chief executive of the service, said: “Covid-19 has had a huge impact on virtually all elements of our lives, including our finances.

“Since measures to control the virus in the UK were put in place, we’ve been hearing from people who aren’t happy with how their financial provider has treated them.

“Some financial businesses must continue to do more to ensure they are treating their customers fairly.”

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