Claim denials account for over half of UK travel insurance complaints
New ombudsman figures highlight continued scrutiny of claims handling practices as regulators examine consumer outcomes across the insurance sector
More than half of the 4,500 travel insurance complaints referred to the UK’s Financial Ombudsman Service (FOS) in the financial year ending March 2026 concerned rejected claims, according to evidence submitted to a parliamentary inquiry.
The ombudsman upheld 30% of complaints involving declined travel insurance claims, highlighting concerns not only about insurers’ decisions but also how claims were handled and communicated to policyholders.
In a letter to the House of Lords Financial Services Regulation Committee, Chief Ombudsman James Dipple-Johnstone said claim rejections were the most common source of complaints involving travel and home insurance.
He identified delays, poor communication, and difficulties navigating the claims process as additional sources of consumer dissatisfaction.
Dipple-Johnstone explained that complaints could be upheld even where an insurer’s decision to reject a claim was justified, if the company had failed to handle the claim fairly or provide an appropriate standard of service.
The findings come as the House of Lords committee examines the regulation of the insurance sector following a super-complaint lodged by consumer group Which? in September 2025.
Which? raised concerns about consumer treatment in the home and travel insurance markets and questioned the effectiveness of regulatory oversight by the Financial Conduct Authority (FCA).
The ombudsman’s evidence also showed that approximately one-third of home insurance complaints concerned rejected claims, with a 29% uphold rate for those disputes.
Separately, Insurance DataLab reported that complaints across the wider insurance sector increased by 23% in the second quarter of 2026 compared with the corresponding period a year earlier.
The figures place renewed attention on insurers’ claims decisions, customer communications, and dispute resolution processes as the parliamentary inquiry continues.
The findings follow an earlier warning from the Financial Ombudsman Service, which highlighted continuing disputes over rejected claims, settlement delays, and payouts.
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