SHORT-TERM insurance complaints rose 40% in 2024 to 126, driven by unsatisfactory services and delays in settlement claims, a new report by the industry’s regulator shows.
In the Insurance and Pension Commission's (Ipec) 2024 Fourth Quarter Short-Term Insurance Industry Report, the regulator revealed that the commission received 33 complaints against the industry.
“For the 12 months ended 31 December 2024, most complaints were against Champions Insurance, Nicoz Diamond and Hamilton Insurance, accounting for 16%, 8% and 7%, respectively, of the total sector complaints,” Ipec said.
During the fourth quarter, there was a 120% increase in complaints received compared to 15 during the same period in 2023.
“24 of the 33 complaints that were lodged during the fourth quarter of 2024 have been resolved and the remaining nine are currently being investigated,” Ipec said.
“Cumulatively, the commission received 126 complaints against the short-term insurers, seven complaints against brokers and one complaint against multiple agents for a total of 134 complaints for the 12 months ended 31 December 2024.
“This was a 40% increase from 96 complaints recorded in the same period in 2023.”
According to the regulator, unsatisfactory service was the major source of complaints, constituting 44% of the complaints during the year.
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“115 of the complaints were resolved during the period under review, and the remaining 19 were carried forward to the first quarter of 2025,” Ipec said.
As of 2024, Ipec had 629 registered entities/persons in the short-term insurance sector compared with 1 310 in the prior year.
Last year alone saw 161 entities registered.
“As at 31 December 2024, direct insurers had 474 727 policies, down from 605,518 policies reported at the end of the third quarter of 2024. During the fourth quarter, 89 159 new policies and 219 950 exits were reported,” Ipec said.
“As at the reporting date, the reinsurance sector had 14 605 and 5 687 policies under the facultative and treaty reinsurance arrangements, respectively. During the quarter, the sector recorded 4 773 new policies and 2 587 exits under facultative reinsurance, while 604 new policies and 501 exits were recorded under treaty reinsurance programmes.”
