RUSSIA: the number of complaints against insurers to the Central Bank increased by 20%, while the number of insurance complaints to the Financial Ombudsman decreased by 17%

16 November 2021 — Marina MAGNAVAL
For 9 months of 2021, the number of complaints against insurers received by the Central Bank amounted to 28 thousand, which is 20.4% more y-o-y, ASN wrote with reference to the data of the Bank of Russia.

The largest share in the mentioned number of complaints falls on MTPL (76.5%). The regulator noted in its report that such growth of complaints was mainly because of the low base, caused by the COVID-19 restrictions in April-June 2020, as well as a decrease in the MTPL availability in some regions.

Incorrect sales of investment life insurance remain the main reason for complaints about mis-selling (+14.8%). At the same time, the number of complaints about mis-selling of brokers' products and services continues to grow. For more effective control of mis-selling, the Bank of Russia intends to use inspections of financial institutions, as reported by the Central Bank's press service.

On the other hand, the number of insurance complaints to the Financial Ombudsman Service in the third quarter of 2021 decreased by 17% y-o-y, to 40,089 complaints, and their share in the total volume of complaints decreased to 89.3% (vs 98.8% a year earlier). The main contribution to the reduction in the number of insurance disputes was made by a 23% reduction in the number of complaints about MTPL.

"MTPL is the most massive type of insurance and the very first segment in which we began to resolve disputes out of court. We've accumulated interesting practice: recently, financial organizations in many cases try not to bring their disputes to a financial ombudsman, but resolve them within at a claim stage", explained Chief Financial Ombudsman Yuri VORONIN.

At the same time, in the segment of life insurance and insurance against accidents and illnesses, an increase in complaints was observed in the third quarter of the year - by 19% y-o-y. According to the Chief Financial Ombudsman, this increase may be due to the fact that on September 1, 2020, the law on return of insurance premium for early repayment of a loan entered into force. "So, more than a year has passed, consumers are now exercising their right and come to us in disputable situations. One cannot but say that the law created a resonance and encourages citizens to fight for their rights more often", added VORONIN.

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