New Research Highlights Consumer Complaints

Everyone in the industry knows that claims timeframes, settlement amounts and MTA fees are constant sources of disagreement. Here’s the word;

Latest analysis by MyHealthPal reveals insurance is the largest contributor to complaint growth across UK financial services in May 2026. This is based on data from the Financial Conduct Authority and the Office for National Statistics. 

The analysis released today found insurance complaints rose 10.1% in the second half of 2025, increasing from 717,523 complaints in H1 to 790,329 in H2. That added more than 72,000 extra complaints in just six months. Without the rise in insurance complaints, overall UK financial complaints would likely have fallen.

At the same time, UK consumers spent approximately £3.06 billion on health insurance during 2025. Spending reached £923 million in Q2 alone, one of the highest quarterly figures recorded in decades.

Insurance became the UK’s fastest-growing financial complaints category in 2026 

The FCA data shows insurance was one of the only major financial product groups to record significant complaint growth during H2 2025.

By comparison:

• Banking and credit card complaints fell 4.7%
• Investment complaints fell 6.9%
• Pension complaints fell 6.6%
• Home finance complaints fell 3.8%

Insurance now accounts for roughly 42% of all UK financial complaints reported to the FCA.

Nearly 60% of Insurance Complaints Showed Customers Were Right 

• 55.5% of complaints were upheld in customers’ favour
• firms received around 141,000 more complaints than they closed
• average compensation for upheld complaints remained above £200
• approximately 1 insurance complaint was filed for every 86 people in the UK

More than 76,000 health insurance complaints were filed in six months 

Separate MyHealthPal analysis also identified more than 76,000 health and medical insurance complaints in six months. Common frustrations included:

• delayed claims,
• rejected treatments,
• policy exclusions,
• communication issues,
• and disputes around what policies actually cover.

Nearly 6% of insurance complaints take longer than eight weeks to resolve 

The analysis suggests many problems emerge not when customers buy insurance, but when they actually try to use it.

Complaints across the insurance sector are frequently linked to claims handling and policy administration. This suggests many customers only fully understand the limits of their cover during moments of illness, treatment, or financial stress.

While around 45% of complaints are resolved within three days, nearly 6% take longer than eight weeks. That can extend uncertainty during what is often a critical moment for patients seeking treatment or reimbursement.

Matt Hall, SME director and owner at MyHealthPal

“Health insurance is increasingly becoming part of how people navigate healthcare in the UK, particularly when NHS waiting times feel uncertain.

The data shows people are spending more on cover at the same time complaints across the wider insurance sector are accelerating.

Insurance products are ultimately built around reassurance. But many frustrations appear to emerge at the exact moment customers need support most — during claims, treatment approvals, or reimbursement disputes.

That creates a growing gap, people expect reassurance during illness, not more stress.”