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AFCA Observes Significant Increase in General Insurance Complaints

Motor Insurance and Add-On Covers Drive Complaint Surge

AFCA Observes Significant Increase in General Insurance Complaints?w=400

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The Australian Financial Complaints Authority (AFCA) has reported a 17% increase in general insurance complaints for the year ending June 30, 2025, totalling 34,231 cases.
This uptick is primarily attributed to issues surrounding add-on covers and delays in motor vehicle insurance claims.

Comprehensive motor insurance remains the most complained-about product, with delays often stemming from industry-wide shortages in parts and skilled labour. David Locke, AFCA's Chief Ombudsman and CEO, emphasised the importance of transparent communication from insurers to maintain consumer trust during these challenging times.

Motor insurance ranked among the top three financial products for complaints, alongside personal transaction accounts and credit cards. The Consumer Action Law Centre expressed concern over the persistent high volume of complaints, highlighting the need for the implementation of the General Insurance Code of Practice to address systemic issues.

Despite the overall number of financial services complaints decreasing by 4% to 100,745, the rise in general insurance grievances underscores the necessity for insurers to enhance their claims processing and customer service practices. AFCA's forthcoming annual review is expected to provide a more detailed analysis of these trends.

Published:Sunday, 1st Feb 2026
Author: Paige Estritori
Sources

Please Note: If this information affects you, seek advice from a licensed professional.

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