AFCA reports record rise in insurance complaints from First Nations customers
AFCA reports record rise in insurance complaints from First Nations customers | Insurance Business Australia
Insurance News
AFCA reports record rise in insurance complaints from First Nations customers
“These figures point to serious challenges,” says regulator
Insurance News
By
Daniel Wood
The Australian Financial Complaints Authority (AFCA) has reported a 47% “surge in complaints” from Aboriginal and Torres Strait Islander (ATSI) customers about comprehensive motor vehicle insurance claims. The regulator also said complaints from Indigenous customers about insurance claim delays rose 24%.
“These figures point to serious challenges faced by First Nations customers in accessing fair and timely insurance services,” said Dr June Smith (main picture), the deputy chief ombudsman.
Overall, said the media release, there was a “record” 25% rise in the number of financial complaints from ATSI peoples during the 2023-24 financial year. The release said AFCA received 3,161 complaints from these customers.
Insurance claims delays a “key issue”
The release said delays in insurance claims were a “key issue” behind the rise. Other major issues included unauthorised transactions. AFCA said complaints about financial difficulty were “disproportionately high.”
“More First Nations people are engaging with AFCA’s free and fair service for resolving financial complaints,” said Smith. “This highlights a critical need for the industry to address these concerns and ensure that general insurance is equitable and responsive to the needs of all customers.”
The deputy chief said the data shows a growing need “for more effective and culturally appropriate financial services” for First Nations Australians.
What do you think of this steep rise in complaints from Indigenous Australians? Please tell us below.
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