In 2023, the ombudsman of the Latvian Insurers Association (LAA) received 44 customer complaints about insurance services. The largest number of applications were received for property insurance – 18. Basically, the ombudsman resolves disputes about the payment of compensation – disagreements about the interpretation of insurance rules and actual circumstances, as well as about the amount of compensation. Customer complaints have been fully or partially satisfied in 5 cases.
“Considering that insurance companies in Latvia have concluded several million contracts with clients – natural persons – 44 complaints is a very small number. Of course, insurers need to continue to improve their services and communication with customers, but overall the number of complaints about the industry is not high, and it has been in the few dozen for several years,” says LAA ombudsman Kristina Pētersone.
Last year, the number of complaints received in the area of CASCO (15) is in second place after property, followed by travel insurance (4), health insurance (3), OCTA (2) and other types. Complaints about OCTA are not considered by the ombudsman, they must be submitted to the Latvian Motor Insurers Bureau (LTAB).
“Due to the challenging weather, property insurance claims increased sharply last year in general – by 42%. Accordingly, the number of insurance cases increased, and it is only natural that the most complaints were also filed about this area,” explains the LAA ombudsman.
38 investigation cases have been initiated for the received complaints, in six cases the complaints were left without progress due to their non-compliance with the regulations. In terms of substance, 37 complaints were examined last year, five of them were fully or partially satisfied, while 31 were rejected, and in one case a settlement was concluded. In all five cases where the ombudsman has satisfied the customer’s complaint, the insurers have complied with this decision.
Compared to the year 2022, the number of received complaints has increased from 35 to 44, and the type of insurance that customers complained about the most has changed – previously it was CASCO.
“Our experience shows that insurers should communicate with clients in a simpler, clearer and more detailed way, explaining both the terms of the contract and the intended exceptions in a language understandable to the layman. Also, customers should read the rules more carefully, ask unclear questions. However, it is clear that it is impossible to completely avoid disagreements, therefore the LAA ombudsman is an efficient and fast way to resolve these disputes in a legal way,” says K. Peterson. Vthe usual deadline for considering a complaint is 90 days from the moment of its submission.
About the Association of Latvian Insurers
The Association of Latvian Insurers (LAA) was founded on August 12, 1993, it represents the common interests of the Latvian insurance industry in order to promote the development of the industry. LAA has 14 members – 10 risk and 4 life insurers, who represent approximately 96% of the Latvian insurance market. LAA is a member of Insurance Europe, a European association of insurers. Since 2004, LAA has also had an ombudsman, or out-of-court compensation dispute review institution.
Association of Insurers of Latvia
2024-03-01 19:12:42
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