The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) has accepted a record number of 600 disputes for investigation in the year from 1 July 2024 to 30 June 2025—a 25% increase from the previous year.

Karen Stevens, Insurance & Financial Services Ombudsman, says the number breaks previous records, with disputes increasing steadily each year from just 285 in 2022.

In total, the IFSO Scheme received 4293 enquiries and complaints over the past year, across insurance and financial services.

“Many of these cases were resolved quickly with assistance from our frontline team. However, we’re seeing a growing number of complaints that remain unresolved even after going through the financial service providers’ internal processes. These cases escalate into disputes that require formal investigation by the IFSO Scheme,” says Stevens.

Stevens says there is no single reason for the increase, however the cost-of-living crisis, and expectations from consumers about what their policies should cover, particularly when premiums have gone up, may be playing a part.

Of the disputes investigated, 67% were about general insurance, including house, contents, vehicle, and travel insurance. 29% were about health, life, or disability insurance, and 4% related to credit contracts and other financial services.

House insurance continues to be the top area for complaints, accounting for 24% of all disputes, followed by motor vehicle insurance (19%) and travel insurance (18%).

In one recent case, Paul* made a claim after his Range Rover was stolen and later recovered. The insurer paid over $37,000 in repairs, lock replacements, diagnostics, and towing fees.

However, after the repairs were completed, Paul raised concerns about additional issues with the vehicle—such as the air conditioning not working, water damage, and possible methamphetamine contamination—and argued that the insurer had missed damage caused by the theft.

The IFSO Scheme investigated. Independent assessors concluded that the problems were either pre-existing before the vehicle was stolen or unrelated.

“The vehicle was recovered and was repaired in accordance with the repair condition in the policy, and the insurer had paid these costs,” Stevens says.

“The IFSO Scheme can only consider whether the insurer had correctly applied the terms and conditions of the policy to the claim. Paul’s complaint was not upheld, because there was no evidence that the issues were caused by the theft, and the insurer had met its obligations under the policy,” says Stevens.

This case highlights the importance of understanding what your insurance policy covers—and what it doesn’t, says Stevens.

“It’s important to understand that insurers rely on evidence,” says Stevens. “If you disagree with a claim decision, you must prove that there was damage missed, or that the settlement is unreasonable,” she says.

The IFSO Scheme is independent, fair, and free for consumers, helping resolve complaints about insurance and financial services.

*Name has been changed

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