Starting this month, the FSS will begin with complaints regarding the allocation of fault in automobile accidents, gradually expanding to include issues like unprofessional behavior by insurance company employees by September, as announced on July 5.
Insurance products are known for their complex structures and lengthy contract periods, leading to a variety of complaints from enrollment to claims and contract management.
Last year, of the total 128,419 financial complaints received by the FSS, 62,937 were related to insurance, accounting for 49.0% of all complaints. The average processing time for insurance complaints decreased from 62.5 days in 2023 to 51.2 days in 2024 but rose again to 56.2 days last year, exceeding the average processing time for all financial complaints, which was 46.6 days.
In response, financial authorities have established a division of responsibilities where the Insurance Association will handle non-dispute complaints, while the FSS will concentrate on dispute-related issues.
The Life Insurance Association and the General Insurance Association have restructured their organizations to create dedicated complaint handling departments and secure specialized personnel. They plan to leverage existing consumer consultation experience and self-regulatory functions to process complaints more swiftly.
To ensure fairness and transparency in complaint handling, the Insurance Association will establish a complaint review committee that includes three external experts and the head of the FSS complaint team. This committee will review significant issues and regularly assess the outcomes of complaint resolutions.
Financial authorities expect that this system overhaul will enable the Insurance Association to quickly address simple complaints while allowing the FSS to focus its expertise on illegal and unhealthy business practices by insurance companies and disputes related to insurance terms.
Additionally, the complaint handling process is anticipated to create a positive feedback loop where consumer grievances are internally reviewed and improved by the industry, thereby enhancing consumer protection levels and trust in the insurance sector.
The FSS stated, "We will operate a regular consultative body with the Insurance Association to jointly monitor the status of complaint transfers and resolutions, and we will continuously address any shortcomings that arise during the implementation of this system. We are committed to exploring various measures to effectively protect the rights of insurance consumers and to foster a culture of consumer protection within the insurance industry."
* This article has been translated by AI.
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