Taiwan reports 44% spike in insurance complaints

Taiwan reports 44% spike in insurance complaints | Insurance Business

Taiwan reports 44% spike in insurance complaints

Taiwan’s Financial Ombudsman Institution (FOI) revealed that the number of insurance complaints in the first quarter jumped by 44% year-on-year, with disputes over health coverage and claims of false sales information being the most common.

There were a total of 1,354 insurance complaints from January to March, with life insurance disputes making up the majority, at 72%, Taipei Times reported. General insurance complaints made up 25%, while the remaining 3% were not identified.

According to Peng Jin-lung, chairman of National Chengchi University’s department of risk management and insurance the increase in complaints could be partly due to increased awareness among consumers.

Consumers are now more willing to lodge complaints against insurance companies and know how to collect evidence when they feel that sales agents have lied to them, he said. However, due to the fluctuating number of disputes, more time is needed to observe if the trend will continue.

The most common claims-related disputes were for health insurance, with policyholders complaining that insurers refused coverage, denied claims for certain procedures, or provided unsatisfactory compensation, the FOI revealed. Meanwhile, most non-claims disputes involved agents allegedly giving false information about the insurance products they sell, such as regarding coverage, guaranteed interest rates, or premium payment schedules.