CI complaints spike in first half year

clock • 1 min read

Complaints about critical illness (CI) have spiked sharply over the last six months, the FSA has reported.

The rise is mirrored by products in the ‘other pure protection' class.

Income protection (IP) complaints have remained largely static, both year-on-year and in consecutive half year periods.

In total complaints against general insurance and pure protection products grew by 18% to 848,357, including an alarming 66% increase in those for advising, selling and arranging.

However, this class grouping includes payment protection insurance (PPI) and so is likely to be skewed significantly by the current ongoing actions, as illustrated by the total number of PPI complaints leaping 23% to 531,667.

Critical illness grievances hit 1,570 in the first half of 2011, up from 1,096 (43% increase) in the same period last year and from 1,122 (40%) in the second half of 2010.

Income protection complaints were largely unchanged at 2,655, up slightly from 2,601 (2%) and 2,474 (7%) over last year.

Other protection products reported similar increases to CI, totalling 16,428, up 42% and 32% respectively.

The total overall number of complaints increased by 3% to 1,852,284 while redress paid decreased by 11% from £459m in 2010 HY2 to £409m.

Within this, the decrease of 18% in redress paid for general insurance and pure protection will also have been affected by firms placing some of their PPI complaints on hold during the judicial review.

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