Life companies top IoM financial ombudsman complaints

Added 15th November 2016

Life companies were the most complained about financial services providers on the Isle of Man last year, according to figures released by the island’s Financial Services Ombudsman.

Life companies top IoM financial ombudsman complaints

Life companies accounted for 50% of the 277 complaints handled by the ombudsman between April 2015 and March 2016.

The number of complaints against the life industry increased to 139 in 2015/16, up from 114 the previous year.

Banks and life insurance companies remain the most complained about providers. However, when compared with 2014/15, the number of complaints about banks fell to 31% from 38%.

In contrast, complaints about life insurance companies increased from 43% the previous year.

 ource o inancial mbudsman cheme Source: IoM Financial Ombudsman Scheme



Upgrades causing delays

In its annual report, the ombudsman wrote: “Several life insurance companies undertook system upgrades during 2015/16, which resulted in unacceptable delays for clients.

"This had a knock-on effect on increasing the number of complaints the providers received, particularly about delays in the claims area, which led to more delays in the complaints handing process.

“Come clients were not getting a final response within the eight-week time limit. This then led to the rise in the number of complaints and enquiries concerning life insurance companies being received by the scheme.” 

Collective investment schemes

Complaints against collective investment schemes increased 10-fold, accounting for 4% of all complaints in 2015/16, up from 0.5% a year ago. 

The ombudsman advised that this was primarily caused by a number of schemes being suspended for long periods, resulting in problems for clients wanting to withdraw their money. 

"Many of the issues have now been crystalised because a number of the schemes are falling into liquidation." 

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Kirsten Hastings

Senior Reporter

Kirsten is a senior reporter for International Adviser, covering global news stories about the financial services industry. She joined Last Word Media in October 2015 after two years working as a reporter covering the staffing and recruitment industry. Kirsten has a Masters in Financial Journalism from the University of Stirling. 

Features

ANALYSIS: All stars aligned for European equities

ANALYSIS: All stars aligned for European equities...Lock icon

The fact that the Euro Stoxx 50 index recorded its largest one-day gain since July 2012 on Monday suggests the importance for investors of Emmanuel Macron’s victory in the first round of the French presidential...

Analysis

Profiles

Directories

Canada Life International Limited
Canada Life International...

Canada Life International Canada Life House,...

Tweets

Events

IA International Portfolio Bond Forum Leeds 2017
IA International Portfolio Bond Forum Leeds 2017

Thursday 27 April
The Thorpe Park Hotel, Leeds

IA International Portfolio Bond & Financial Planning Forum 2017
IA Best Practice Adviser Awards UK 2017
IA Best Practice Adviser Awards UK 2017

Wednesday 3 May
The Waldorf Hilton, London

IA Product & Service Awards 2017
IA Product & Service Awards 2017

Wednesday 3 May
The Waldorf Hilton, London 

Sponsored Content

Investment Strategy

OTHER STORIES FROM LAST WORD...