Equal numbers of complaints filed against the activities of insurance companies and banks last year
The number of complaints regarding property insurance and comprehensive insurance received by the Financial Supervision Authority increased last year whilst the number of disputes concerning banking services decreased.
In 2009 complaints about the activities credit institutions comprised approximately two-thirds of all complaints received by the Financial Supervision Authority, but the percentages of complaints against insurance companies and banks were equal in 2010: 49% and 49%. The remaining complaints concerned the activities of investment firms, management companies and insurance brokers.
In terms of market shares, the Financial Supervision Authority received the highest number of complaints about the activities of BTA Kindlustus (BTA apdrošināšanas akciju sabiedrība Estonia Branch), and the number of complaints concerning the activities of If P&C Insurance AS has also gone up.
Determination of the amount of indemnity by insurers caused the highest number of disputes in 2010. As always, there were many complaints about the differences in the interpretation of insurance terms and conditions by parties to insurance contracts and several policyholders were not satisfied with their insurers when the latter refused to pay out indemnities. The biggest source of problems for policyholders in the area of life insurance was calculation and understanding the costs associated with life insurance contracts. The problems caused by the payment difficulties of clients were dominant in the area of banking services.
The number of complaints received by the Financial Supervision Authority from 2002-2005 was proportionally the highest in the area of insurance. A significant change occurred in 2006, as it was the first time when the Financial Supervision Authority received more complaints about banking services than insurance services. The problems back then were mainly associated with the different ways in which parties interpreted the terms and conditions of loan agreements, or the failure of clients to make sure they understood their rights and obligations properly before signing loan or credit agreements. The number of complaints filed with the Financial Supervision Authority in 2007 was once again the highest in the area of insurance.
The total number of complaints filed with the Financial Supervision Authority has increased every year. The number of complaints filed with the Financial Supervision Authority in 2007 and 2008 was 82 and 153, respectively, but it increased to 167 in 2009 and 181 in 2010. It is highly likely that the increase in the number of complaints in 2008 and 2009 was caused by the global financial and economic crisis, which resulted in clients taking an increased interest in the financial services they were using. The number of complaints about the area of banking filed with the Financial Supervision Authorities almost quadrupled in 2008 and complaints against credit institution was also dominant in 2009.