More than 9,500 complaints were lodged with AFCA in May 2023, up 35% from May 2022. Banking and finance complaints were up 42% year-on-year while general insurance complaints were up by 16%. There was also a 74% year-on-year rise in superannuation complaints in May, primarily driven by delays in claim handling and account administration errors. 

AFCA closed 8,753 complaints, 37% more than it closed in May 2022. More than half (57% or 5,023) were closed at Registration and Referral, 7% at Rules (571 complaints), 31% at Case Management (2,684 complaints) and 5% at Decision (475 complaints).   

Banking and finance  

Over 5,000 banking and finance related complaints were lodged with AFCA in May. This was a 42% year-on-year increase compared to May 2022 (5,614 compared to 3,967).  

We are seeing an increase in complaints about financial difficulty, especially in relation to home loans. 

There were an additional 463 financial difficulty related complaints made to AFCA last month, up 32% compared to May last year. Of these complaints, 136 involved home loans, which is a 35% increase from May 2022. 

Personal transaction account complaints continue to be the most common product complained about (up 110% year-on-year from 744 to 1,560), with unauthorised transactions making up a third (34%) of these complaints, followed by mistaken internet payments (9%). 

General insurance  

There was a 16% year-on-year increase in general insurance complaints, from 2,329 in May 2022 to 2,712 in May 2023. Motor vehicle comprehensive complaints made up 34% of all General Insurance complaints and had the most significant year-on-year increase (39%) from 654 complaints in May 2022 to 909 complaints in May 2023. 

Home building complaints were up 8% from 788 complaints in May 2022 to 849 complaints in May 2023, with claim amount (25%) and claim delay (23%) being the most complained about issues. 

Delays in claim handling continues to represent the largest issue (26% of general insurance complaints), followed by claim amount (21%).  

Superannuation  

Superannuation complaints saw a 74% year-on-year increase, from 473 complaints in May 2022 to 823 complaints in May 2023.   

Delay in claim handling complaints (which represents the largest super issue with 34%) increased 271% year-on-year in May, from 75 to 278. This was followed by complaints relating to account administration error, which increased 142% from 36 in May 2022 to 87 in May 2023. 

Investments and advice  

There was a 5% year-on-year decrease in investment and advice complaints (194 from 205).   

Shares was the most common product complained about (representing 24% of investment complaints), up 2% from last year. Service-related issues accounted for 31% of complaints. 

Life insurance  

Life insurance complaints declined 5% year-on-year (from 167 to 159). 

Term life insurance complaints increased 215%, from 20 complaints in May 2022 to 63 in May 2023. The most complained about issue was delays in claim handling, representing 22% of complaints.  

Small business   

Small business complaints increased 18%, from 338 in May 2022 to 400 complaints in May 2023. 

The most complained about issue was unauthorised transactions, which was up 113% from May 2022. Most of these complaints related to business transaction accounts.  

We also saw a 13% increase (from 40 in May 2022 to 45 in May 2023) in small business complaints relating to financial difficulty. Two thirds (67%) of these complaints were about financial firm failure to respond to request for assistance.