Higher number of claims reported to the insurance mediation organization compared to last year.
In 2023, the well-known arbitration board for insurance firms received a record-breaking 18,037 complaints, which is a significant increase from the 15,907 filed the year before. As stated by the Insurance Ombudsman Association on a Wednesday meeting, this surplus can be attributed to the increased frequency of policy changes, for instance with car insurance.
When customers experience any issues with their insurance company, they have the option to get in touch with the arbitration board for free. This entity evaluates the insurance company's or broker's decision. If the value in contention doesn't reach 10,000 euros, the ruling is legally enforceable. It must be noted that private health insurers and statutory insurers are not part of this process.
Last year, the number of complaints rose by 13.4% compared to 2022. The most significant increases were observed in motor vehicle liability (27%), motor vehicle own-damage (30%), and liability insurance (22%), as reported by the mediating body. In the majority of cases, customers were successful in resolving their disputes. However, life insurance had a slightly lower success rate, at 35%.
The rise in complaints can, in part, be attributed to the growing popularity of comparison sites, where consumers can scrutinize the costs of various insurers. This has resulted in more people opting for lower-cost alternatives, leading to a higher risk of confusing the no-claims classes and generating a greater number of disputes.
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More complaints were filed with the arbitration board for insurances in 2023, totaling 18,037, indicating a 13.4% increase from the 15,907 complaints received the previous year. As a result, the board had to handle more arbitration cases related to car insurance, liability insurance, and other insurance policies. In some cases, these disputes resulted in the insurance company or broker having to pay compensation to the policyholder.
Source: www.ntv.de
