What the Ombudsman’s complaints data reveals
Judge Ron McLaren is in favour of transparency when it comes to complaints data, hoping it will motivate the industry to improve service.
Aspiring to greater transparency, the Ombudsman for Long-term Insurance published complaints information about each insurer for the second consecutive year on www.ombud.co.za . The information also reflects how many complaints were received and finalised and whether they were in the complainant’s or insurer’s favour.
Of the 10 028 complaints lodged with the Ombudsman for Long-term Insurance during 2013, the office finalised 4 496 full cases. Within six months after the complaints were lodged, 77 per cent of them were finalised. The office recovered an immense R103.8 million in lump sums for the complainants over the course of 2013.
However, it also reveals that only 33 per cent of [4 496] cases considered were resolved wholly or partially in the favour of the complainant. The Ombudsman also granted R343 741 in compensation to consumers for poor service throughout the year.
“The complaints data should be used by intermediaries, consumers and others in conjunction with other measures such as the size of the insurer, the number of policies in issue, claims ratio, its efficiency generally and its products to give a full picture of an insurer’s performance,” Ombudsman Ron McLaren said.
The complaints data, of which a copy is in the Record’s possession, revealed that Hollard Life Assurance Company Limited, Liberty Group Limited, Metropolitan Life Limited, Old Mutual Life Assurance Company (South Africa) Limited and Sanlam Sky Solutions (African Life Assurance Company) Limited were the cause of the bulk of the complaints. Of 6 603 complaints listed in the complaints data, 3 273 were about these five companies — a staggering 49.6 per cent. Of the complaints, 72 per cent were resolved in favour of the insurer which means that only 28 per cent of complainants were favoured.
AIG Life South Africa Limited, FedGroup Life Limited, MS Life Assurance Company Limited, NestLife Assurance Corporation Limited and New Era Life Insurance Company Limited shared amongst them 504 complaints. In cases about these five companies 71 per cent of the complaints were resolved in favour of the complainant.
The data reveals other valuable information about the 48 companies listed.
