Significant increase in insurance complaints to Financial Services and Pensions Ombudsman in 2025

The Financial Services and Pensions Ombudsman (“FSPO”) published its annual Overview of Complaints for 2025 on 25 March 2026 (the “Overview”). The Overview highlights continued growth in insurance related complaints and increased scrutiny of insurance provider practices.

Complaints against insurers continue to rise 

Insurance continues to account for the second largest share of complaints received by the FSPO (after Banking) with 2,142 insurance complaints in 2025. This represents 31% of all complaints received, and reflects an 18% increase compared with 2024 (1,818). 

The largest number of insurance complaints received related to motor insurance (968 complaints), followed by private health insurance (325 complaints) and travel insurance (241 complaints).

Over the past three years, insurance complaints have almost doubled, a trajectory the FSPO describes as concerning. The Overview notes that the FSPO will be engaging directly with the insurance sector to address the issues highlighted in the report.

Complaint categories

Claims handling (553 complaints representing 26% of insurance complaints) and claim rejection (481 complaints representing 22% of insurance complaints)  remain the most significant drivers of consumer dissatisfaction in relation to insurance complaints. The remaining categories of complaint mirror the trends seen in 2024 (customer service and administrative shortcomings).

Strong use of mediation to resolve insurance complaints

A significant proportion of insurance complaints were resolved through the FSPO’s Dispute Resolution Service (DRS), which uses informal mediation. In 2025, 41% (1,521) of all complaints closed were resolved through mediation. The Overview notes that the FSPO’s Return for Further Mediation process, where cases initially escalated for formal investigation are redirected back to mediation, has been well received by complainants and providers and has proved effective (47% of complaints referred for further mediation were resolved).

Referrals to the Central Bank highlight systemic concerns

In 2025, the FSPO referred two legally binding decisions involving insurance providers to the Central Bank of Ireland (CBI) for further review after the FSPO identified potential systemic issues in how each provider handled persistent errors.

The issues raised were as follows:

1. The provider failed to act appropriately after recognising a mistake, resulting in a delay in resolving the issue, which lasted several years. 
2. The provider’s failures persisted and reoccurred over many years despite the failures being notified to the provider.

These referrals serve as a reminder that the FSPO will consider whether an individual complaint potentially highlights a systemic issue with the provider, and if so, the FSPO will refer its legally binding decision to the CBI for further review by the regulator.

Key takeaways for insurance providers

The Overview highlights the ongoing need for insurers to maintain, efficient, transparent and customer focused complaint handling frameworks and to ensure claims decisions are well supported and communicated in a timely manner in order to reduce the risk of escalation to the FSPO and potential regulatory investigation.