General insurance complaints reached 36,022 during the 2025-26 financial year, according to the Australian Financial Complaints Authority’s (AFCA) latest Annual Review, marking a fifth consecutive year of growth for the sector.
The figure represents a 5% increase on the previous year and sits within AFCA’s record total of 119,949 complaints across all financial services, up 19% on 2024-25. General insurance was the second-largest source of complaints behind banking and finance.
For brokers, the data offers a direct read on where insurer performance is falling short and which product lines are generating the most client friction. The National Insurance Brokers Association (NIBA) has previously noted that broker-related complaints account for less than 1% of total AFCA complaints, meaning the vast majority of general insurance disputes stem from insurer conduct.
Motor vehicle comprehensive insurance remained the most complained-about general insurance product, with 14,430 complaints, a 28% increase on the prior year. Home building insurance complaints rose 25% to 8,547 after two years of decline.
Consumer credit insurance, travel insurance, and home contents rounded out the top five product categories, with 2,636, 2,459, and 1,756 complaints respectively, according to the AFCA Annual Review.
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Delay in claim handling was the most common issue across general insurance for the fifth year running, with 8,246 complaints, up 25% on 2024-25.
Denial of claim complaints rose 47% to 6,561. Disputes over claim amounts increased 20% to 6,376, and complaints about denial of claim based on an exclusion or condition jumped from 2,503 to 3,384.
AFCA chief ombudsman and chief executive officer David Locke (pictured) said insurers bear responsibility for keeping policyholders informed throughout the claims process. “General insurance complaints have increased every year. While we recognise the impact of climate-related events and supply chain issues, insurers remain responsible for keeping customers informed, explaining delays and communicating clearly throughout the claims process,” Locke said.
The review noted that supply chain constraints continued to affect motor and home insurance claims, with shortages of skilled trades, repair capacity, and parts contributing to longer repair timeframes.
These complaint trends sit against the backdrop of the General Insurance Code of Practice, which requires insurers to make a claims decision within four months of receiving a claim and to provide progress updates at least every 20 business days. The Insurance Council of Australia (ICA) submitted a strengthened version of the Code to the Australian Securities and Investments Commission (ASIC) in October 2026.
Read more: Insurer claim delays top complaints again as brokers report no change
AFCA closed 37,069 general insurance complaints during the period, more than the 36,022 received. The average time to close a general insurance complaint fell from 96 days to 84 days.
More than 15,700 complaints closed at the referral stage and a further 14,143 during case management, which together accounted for more than 80% of closures. Around 54% of complaints closed within 60 days.
The referral figure is worth noting for brokers: it represents cases where the insurer resolved the complaint after AFCA referred it back to them, suggesting these disputes could have been settled earlier through internal processes.
Brokers looking to benchmark individual insurers can access AFCA’s publicly available Data Cube at data.afca.org.au, which breaks down complaint volumes by firm and product line.
The review identified cost-of-living pressures as a factor in both complaint volumes and the nature of disputes. AFCA noted that consumers reported rising household costs had increased scrutiny of insurance premiums and heightened expectations about policy value, coverage, and claims outcomes.
Across all sectors, AFCA awarded $834,197,535 in compensation to consumers during 2025-26. Of complaints that went to determination, 41% were found in favour of complainants and 59% in favour of the financial firm.
Banking and finance complaints totalled 66,971, with scams (6,580 complaints) and unauthorised transactions (6,038) the top two issues. The Australian Scams Ombudsman, to be operated by AFCA, will begin accepting complaints about banks, telcos, and digital platforms from March 31, 2027.
Superannuation complaints rose 42% to 8,755, while financial difficulty complaints increased 17% to 5,566.
“Nobody wants to see this number of complaints. The data reinforces the need for firms to resolve issues early where they can. Internal dispute resolution is an opportunity for financial firms to put things right, and stop the complaint from escalating to AFCA,” Locke said.
