Significant events

AFCA activates significant event response plans for events that could potentially result in large numbers of related complaints being lodged with AFCA, such as natural disasters and severe weather events.

The significant event response plan provides for early communication with relevant stakeholders, and a more streamlined, expedited process for the resolution of related complaints.

AFCA also regularly engages with industry including ASIC, the Commonwealth Treasury and APRA, as well as industry representatives, such as the Insurance Council of Australia (ICA), to ensure our approach to handling these disputes is appropriate.

In the last financial year, AFCA activated five significant event response plans to support those directly impacted. These related to:

1. Victorian floods and storms – 15 June 2021
2. Tropical Cyclone Seroja – 14 April 2021
3. New South Wales and South East Queensland storms and floods – 22 March 2021
4. Perth Hill bushfires – 5 February 2021
5. South East Queensland Halloween hailstorms – 1 November 2020.

 

In total, AFCA received 9,097 complaints related to significant events in 2020–21 (including those related to significant events that had been declared in previous financial years).

The vast majority of those complaints (8,303) related to COVID-19, which was declared a significant event in 2019–20.

COVID-19

AFCA has continued to work hard to respond to the challenge of the COVID-19 pandemic in a flexible and pragmatic way.

In 2020–21, there were 8,303 COVID-related complaints, up from 5,013 in just four months at the end of 2019–20, after the pandemic was officially declared.

AFCA resolved 9,344 COVID-19, related financial complaints this year. The most common issues seen in complaints about COVID-19 were financial firms’ failure to respond to requests for assistance (1,056), denial of claim – exclusion/condition (822), denial of claim (763) and delay in claim handling (633).

Of the complaints received, 1,995 were from consumers and small businesses experiencing financial difficulties.

Between 1 July 2020 and 30 June 2021

COVID-19 complaints by product area ¹

Product area	Total	Percentage
Banking and finance	4,809	58%
General insurance	2,636	32%
Superannuation	484	6%
Investments and advice	313	4%
Life insurance	60	1%

COVID-19 complaints – top 10 products ²

Product	Total	Percentage
Travel insurance	2,012	24%
Credit cards	1,282	15%
Home loans	1,054	13%
Personal loans	766	9%
Superannuation account	361	4%
Business loans	341	4%
Personal transaction accounts	332	4%
Investment property loans	152	2%
Loss of profits/ business interruption	123	1%
Landlords insurance	119	1%

COVID-19 complaints – top 10 issues ³

Product	Total	Percentage
Financial firm failure to respond to request for assistance	1,056	11%
Insurance – denial of claim – exclusion/condition	822	9%
Insurance – denial of claim	763	8%
Insurance – delay in claim handling	633	7%
Decline of financial difficulty request	511	6%
Service quality	498	5%
Insurance – claim amount	336	4%
Default listing	279	3%
Incorrect fees/costs	278	3%
Unauthorised transactions	239	3%

 

¹ One complaint can have multiple product areas. Percentages have been rounded and, as a result, do not total to 100%.

² One complaint can have multiple products.

³ One complaint can have multiple issues.

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