New Zealand-based financial dispute service Financial Services Complaints has released data showing that travel insurance is the product about which it receives the most complaints.
The organisation said that, in the year to 30 June 2018, it opened 288 cases for investigation; a 35-per-cent year-on-year increase (and the highest number since it first began investigating such issues in 2011). Of these, 36 per cent were related to insurers or insurance, and travel insurance was the specific product that Kiwis were reportedly the unhappiest about.
Consumer credit and travel cards were also extensively complained about.
The organisation’s Chief Executive Susan Taylor said that the rise in complaints related to travel insurance correlates with the fact that more New Zealanders are travelling abroad than ever before. In some ways, this can be seen as positive news, because it shows that these travellers are taking out coverage – although clearly there is either an issue with consumer understanding of insurance, or some insurers are not fulfilling their duties to the fullest extent. Or perhaps both.