The scheme has released its latest annual report, which shows 70% of all complaints in the most recent financial year related to general insurance.

This includes 91 complaints about house insurance, 54 travel, 46 vehicle, and 22 contents insurance. Eighty complaints (25% of the total) were about health, life and disability insurance. Twelve complaints were about credit contracts, and three complaints were about financial advisers.

There were 109 inquiries about financial advisers.

Concerns related to fees and charges, standard of service and customer service.

Ombudsman Karen Stevens said the sector had been given a strong message to improve conduct and culture.

“A good step is understanding what can be identified and learnt from complaints.”

The three complaints

One man complained because his attempt to cancel his insurance failed. He told his adviser he wanted to end his insurance contract, to which the adviser responded saying he was on holiday and the client should contact the insurer directly.

The client said he did not receive this message and complained a year later that the policy was still in force. He wanted a refund of the payments made in that time.

IFSO said it might have been best for the adviser to follow up with the client but did not believe he was required to do so.

The client also complained about some insulting emails sent to him by the adviser, after he made the complaint and after the adviser had retired. The case manager agreed the emails were not professional, but did not believe they meant the adviser had to pay the extra premiums. 

The complaint was not upheld.

Another client complained because his financial adviser tried to claim $1,351 from him when he refinanced his house within two years of taking out a mortgage.

The adviser had added $400 of her commission to the cashback he was given from the bank when the loan was issued. The client argued he was not aware the adviser would charge him a fee.

But IFSO said he had signed a contract agreeing to pay a fee if he refinanced within two years.

That was calculated at a minimum $500 plus time spent at an hourly rate of $150.

The complaint was not upheld.

The third related to financial advice on general insurance.