Complaints about insurance firms - whatever next?!?

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It's bordering on "Queen Victoria's dead" in startling news value, but it seems that more than half of people who have complained to an insurance company during the past year are unhappy about the way their complaint was handled.

According to research from the Association of British Insurers (ABI), around 57% of people who lodged a complaint during 2007/08 thought it had been handled in a poor way, up from 50% during the previous 12 months. Making matters worse, there was a simultaneous drop in the number of consumers who thought complaint handling had been very good or excellent, falling to 10% from 14% during the previous 12 months.

Problems with an insurance product remained the most common reason people gave for complaining, cited by 45%, followed by general errors at 39%, with people also complaining about poor communication and service.

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