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FSPO Reports Rise in Banking and Insurance Complaints

Banking and Insurance

FSPO Reports Increase in Banking & Insurance Complaints

Business Honor
27 March, 2025

FSPO reports a rise in banking and insurance complaints in 2024, totaling 6,185 cases.

The Financial Services and Pensions Ombudsman (FSPO) has issued an increase in banking and insurance complaints in 2024 to a total of 6,185, representing the second successive year complaints have passed the 6,000 mark. The growth indicates continued consumer disaffection in the two sectors, with banking providing the lion's share of the complaints.

Complaints relating to banking were at the top of the list, with 3,404 complaints, accounting for 55% of the complaints the FSPO received. While there was a 12% decline in bank complaints in 2023, it remained high. Among the banking sector's concerns was that of disputed transactions, which increased by 12%, the indication of an across-the-board increase in cases of scams. Almost one-third of total complaints lodged against banks were under complaints about unauthorized transactions, fraudulent overdrafts, and faulty balances. Ombudsman Liam Sloyan attributed this increase as a reaction to the growing level of fraud, urging banks to raise security levels and customer service.

The insurance industry also witnessed a rapid rise in complaints, with 1,818 cases registered—a 26% increase from last year. The complaints in this sector were customer service- and claim-handling-related. Motor insurance was the leading category at 41% of the complaints, followed by private health insurance at 14%. Among the issues complained of were rejected claims, communication breakdown, and slow processing of claims, which were inconvenient to consumers.

Sloyan urged service providers to take note of increasing complaints and look for ways to reduce them by implementing better practices. The FSPO's investigation and mediation process provided financial redress to consumers totaling €5.7 million, which is a reflection of sustained improvement needed in banking and insurance services.