Majority of motor insurance consumers don't know where to complain if unsatisfied by service

The majority of consumers don’t know what to do when they are not satisfied with how a complaint is handled by motor insurance companies, a survey has revealed.

66% of respondents in a survey carried out by the Malta Financial Services Authority demonstrated a lack of knowledge on what procedures to follow if the complaint is not handled appropriately by their respective insurance.

The study sought information on consumers’ knowledge about their motor insurance, their purchasing decisions and consumer satisfaction.

Despite 36% saying that they knew what steps they should take, no one mentioned the possibility of lodging the complaint with the Office of the Arbiter for Financial Services (OFSA).

Of those who said that they know what steps to pursue if the complaint is not handled in a satisfactory manner, 36% said that they would be calling the company’s complaint department, 25% said that they would be reporting to consumer affairs, 19% would be changing their insurance provider, 7% said that they would be seeking legal advice and 5% would be contacting the MFSA.

The study’s respondents were also asked on their satisfaction in how their claim was handled.

48% on participants said that they opened at least one claim with their current insurer, with 89% of them stating that they were very or fairly satisfied.

55% of males who lodged a claim with their insurers said that they were not satisfied with how their claim was handled, while 62% of females expressed satisfaction.

90% of respondents said they were satisfied with the over-all service provided by their motor insurer.

Participants in the study were asked on what the key driver for purchasing their insurance was, with the majority (32%) citing price.

Loyalty came second at 14%, while convenience (12%) and reputation came third and fourth respectively.

61% of insurers bought their policy directly from the insurance company, 21% chose to purchase though a broker, 17% through an agent and 1% through an insurance website.

Statistics revealed that the majority of females purchased their car insurance directly from the insurance company, while the majority of males bought their's through a retail intermediary.  

The majority of respondents also retained their current provider, with 85% choosing to stay with the same company.

From the participants, 80% correctly stated the name of their insurer, 14% cited their insurance intermediary, and 6% said that they didn’t know.

Looking ahead, the MFSA said that the study revealed customer’s lack of knowledge on their rights as consumers.

The reluctance to change provider was also highlighted by the MFSA, who attributed the results to cultural tendencies and consumer education.

“The MFSA plans to embark on a number of consumer education initiatives with respect to insurance products,” the report read.