Consumer champion Which? has said insurers cause customers distress and inconvenience in almost two-thirds of cases in which the Financial Ombudsman Service has upheld final complaint decisions.

Analysis by Which? found distress and inconvenience were recorded in 64% of all complaints upheld by the FOS in 2023. This was up from the 53% recorded in 2019. It also identified four insurers that had caused distress or inconvenience in at least 70% of upheld complaints. These were Advantage Insurance Company, British Gas Insurance, British Gas Services and Hastings Insurance Services.

Rocio Concha, director of policy and advocacy at Which?, said: “Our research of consumers’ complaints to the Financial Ombudsman Service shows that in many cases insurance providers have caused additional distress and inconvenience to consumers - further prolonging the often already stressful ordeal.

“The FCA’s expectations and regulation are clear, yet it would appear some insurers continue to fall short of the standards expected. The regulator must get tough with poorly behaving companies and take action where necessary.”