Australia’s general insurers received 2.08 million complaints in FY2025, a 30.2% increase from 1.6 million in the prior year, with the sector accounting for more than a third of the 5.4 million total financial services complaints, according to the country’s dispute resolution data.
The sharp rise in complaints was accompanied by A$175.2m (US$124.4m) in monetary settlements across 333,708 cases, as insurers faced growing pressure on claims handling, pricing and service delivery, according to the Australian Securities and Investments Commission’s (ASIC) financial complaints dashboard.
The data dashboard, launched in March this year, presents internal dispute resolution data at aggregate and company levels. It covers domestic, extended warranty, professional indemnity and small business and farm insurance products. The transparency initiative forms part of ASIC’s key enforcement priorities for 2026, including claims and complaints handling failures by insurers.
Of the total complaints received, insurers provided service-based solutions in 739,022 cases, changed their decisions in 306,540 cases and offered apologies, explanations or no remedy in 703,504 disputes.
The majority of complaints, 1.75 million, were lodged by phone and resolved within 1.6 days, underscoring the efficiency of internal resolution channels, while 8,946 grievances referred through the Australian Financial Complaints Authority took an average of 25.5 days to resolve. Overall, 81.6% of complaints were closed within a day and 99.3% within 30 days.
Premiums were the leading cause of complaints, accounting for 42% of all disputes. Service-related matters placed second at 17.5%, followed by claims handling delays at 9%, technical problems at 3.9% and insurance coverage terms at 3.7%.
By product, comprehensive motor vehicle insurance generated the most complaints at 1.14 million, followed by home building at 517,202, home contents at 146,931, landlord insurance at 78,790 and personal and domestic property at 41,755.
The rising complaints coincide with Australia’s widening home insurance protection gap as rising premiums and climate risks push coverage beyond the reach of many households, according to S&P Global Ratings.
Major insurers
Suncorp recorded the highest number of complaints among the five largest insurers, receiving 1.03 million disputes, nearly half the industry total. The insurer also recorded a higher share of cases that were settled with monetary payments. It settled about a quarter of the complaints, 252,451 cases with payment totalling A$41.932m. Issues concerning premiums accounted for 64.5% of Suncorp’s complaints, the highest concentration among major insurers.
IAG received 201,130 complaints, settling 8,790 or 4.37% cases with monetary payments of A$27.7m. Service-related matters were the leading complaint type at 28.7%, followed by premiums at 19% and claims handling delays at 15.1%.
Hollard Insurance settled 1,313 of the total 99,390 complaints with monetary payments totalling A$1.03m, with service-related matters accounting for 41.4% of complaints. Allianz Australia received 70,038 complaints, settling 3,609 or 5.15% cases for A$8.963m. Claims handling delays were the top complaint issue at 32.6%, followed by service-related matters at 30.2%.
QBE Insurance Australia received 10,350 complaints, the lowest among the five major insurers, closing 12.4% within a day and settling 1,056 or 10.2% cases for A$1.897m. Service-related matters led at 20.3%, followed by general service delays at 19.3%.
ASIC noted that a high volume of complaints does not necessarily indicate poor performance. It can reflect a firm’s size, product offerings, or complaint recording and reporting practices.
