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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

⚠️The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

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
Source: Paige Estritori

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

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Insurance News

AFCA Observes Significant Increase in General Insurance Complaints

AFCA Observes Significant Increase in General Insurance Complaints

01 Feb 2026: Paige Estritori

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. - read more

APRA's Findings: Stability in PI Claims and Decreasing Premiums

APRA's Findings: Stability in PI Claims and Decreasing Premiums

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The Australian Prudential Regulation Authority (APRA) has released its latest National Claims and Policies Database, providing valuable insights into the professional indemnity (PI) insurance sector for the 2022 underwriting year. The data indicates that PI claims payments for non-facility business remained relatively stable at $1.111 billion, a slight increase from $1.109 billion in the previous year. - read more

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Sydney-based insurtech company Upcover has unveiled a new professional indemnity and public liability insurance product tailored specifically for nurses across Australia. This initiative aims to provide comprehensive coverage that meets the unique needs of nursing professionals, including nurse practitioners, in-patient nurses, doulas, and nursing students. - read more

Rising Strata Insurance Costs in the Northern Territory

Rising Strata Insurance Costs in the Northern Territory

01 Feb 2026: Paige Estritori

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