More complaints submitted regarding banks
Last year, the greatest number of complaints received by the Financial Supervision Authority concerned banking services. At the same time, the number of complaints regarding property insurance, motor own damage insurance and motor TPL insurance has more than halved.
While in 2010, the number of complaints regarding insurers and banks broke down in equal parts, last year, complaints regarding banks made up two-thirds of all contacts from customers. Overall, however, the number of complaints submitted to the Financial Supervision Authority dropped compared to years past.
The most complaints to the Financial Supervision Authority concerned Swedbank, while in terms of market share, the proportion of complaints concerning Nordea and Sampo (Danske Bank’s Estonian branch) increased as well.
The problems arising in consumption of bank services were mainly related to everyday banking and loans. Customers expressed dissatisfaction regarding banks notifying them of changes to price lists. They were also not satisfied with the practice for notifying loan sureties when borrowers had payment difficulties, access restrictions on bank services due to blockages of accounts and unilateral cancellation of credit card agreements by banks. Payment problems continued to be a source of concern for customers, including problems achieving a mutually satisfactory arrangement for surmounting payment problems.
As usual, the most disputes in the insurance field concerned claims adjustment – the amount of indemnity paid. Complaints also were related to differences in how insurance parties interpreted insurance agreements and policyholders’ dissatisfaction following refusal by insurance companies to pay an indemnity.
With regard to compulsory funded pensions, the performance of the funds was a cause of dissatisfaction; there were also complaints alleging inappropriate trading practices in marketing pension funds.
The number of complaints filed with the Financial Supervision Authority increased from 2008 to last year. Whereas the Financial Supervision Authority received 82 complaints in 2007, it got 153 of them in 2008 and 181 complaints in 2010. In 2011, the number of complaints decreased, and a total 148 customer complaints concerning financial services were lodged.
The number of complaints filed with the Financial Supervision Authority in 2011 by service provider and market share in the respective sector:
Danske Bank A/S Estonian branch
Nordea Bank Finland Plc Estonian branch
AS SEB Bank
If P&C Insurance AS
AB Bankas Snoras Estonian branch
ERGO Kindlustuse AS
AAS Gjensidige Baltic Estonian branch
AS Eesti Krediidipank
Seesam Insurance AS
AS SEB Elu- ja Pensionikindlustus
AS Citadele banka Estonian branch
MARFIN PANK EESTI AS
Salva Kindlustuse AS
Swedbank P&C Insurance AS
AS LHV Pank
Compensa Life Vienna Insurance Group SE
Swedbank Life Insurance SE
Admiral Markets AS
Allied Irish Banks p.l.c. Estonia branch
Bank DnB A/S Estonia branch
BTA Insurance Company SE Estonia branch
Codan Forsikring A/S Estonia branch
IIZI Kindlustusmaakler AS
QBE Insurance (Europe) Limited Estonia branch
Note: Market shares as of 31 December 2011. Market shares are shown on the basis of insurance premiums in the case of insurance companies, and on the basis of asset volumes for banks.
On 23 November 2011 the Financial Supervision Authority established additional guidelines for handling of customer complaints with the goal of determining what the obligations of financial service providers are with regard to processing complaints from customers and communicating with customers. The goal of the guidelines is likewise to encourage financial service providers to take into account information stemming from customer complaints, so that the information could be used to make the necessary correctives to business solutions, internal rules and sales documentation in order to provide better protection of customer interests.