The FSA has proposed changes to its complaints handling procedure as it reveals pure protection grievances continued to grow in the first half of the year.
Almost 1,000 more pure protection complaints were received in the first six months of 2010 compared with the same period last year.
The rate has slowed in the last six months, but overall there has been a jump of 6.6% to15,307, up 944 on the first half of 2009.
The other pure protection and critical illness product categories both saw increases in grievances over the last six months, reaching 11,569 (up 7.4%) and 1,096 (14.4%) respectively.
However, complaints regarding income protection products fell 24% to 2,642 from 3,461.
Overall, bank current accounts produced the highest complaint levels, with payment protection insurance second.
In a bid to drive up standards of complaints handling within the industry, the regulator has unveiled proposed changes to its complaints handling rules.
It said these are part of a package of measures, adding that the consultation paper is aimed at ensuring more firms resolve complaints promptly and fairly.
The proposals include:
- Requiring firms to identify a senior individual responsible for complaints handling;
- Abolition of the ‘two-stage' complaints handling to incentivise firms to resolve complaints fairly first time;
- Underlining the requirement for firms to carry out root cause analysis, by identifying and remedying any recurrent or systemic problems with complaints;
- and additional guidance in relation to taking account of ombudsman decisions.
It also proposes to increase the limit on awards made by the Financial Ombudsman Service from £100,000 to £150,000.
