The Australian Financial Complaints Authority received 36,326 general insurance complaints last year, up 20% on 2024.  

The ombudsman says 12,879 complaints related to motor policies – up 18%, making it the second most disputed product overall. 

“The increase in complaints around motor vehicle insurance is largely being driven by claims delays,” a spokesperson told insuranceNEWS.com.au. “We understand that shortages of labour and parts might be out of insurers’ control, but what they can control is communicating effectively with their customers, keeping them up to date, and helping navigate delays.”  

The number of complaints about home insurance increased 3% to 7359, while consumer credit insurance disputes rose 88% to 7137.

In total, a record 111,373 complaints were lodged with AFCA – a 14% increase from 2024.  

Chief ombudsman David Locke says the data “highlights the sustained demand for our service” at a “pivotal moment for the financial services sector to elevate standards and deliver more consistent, accessible and customer-focused outcomes” amid reforms in the insurance and banking sectors.