Belgium's insurance mediator handles more than 8,000 complaints per year

Belgium’s insurance ombudsman opened more than 8,300 cases last year concerning problems arising between a customer and an insurance company, its new annual report has revealed.

The number of complaints about insurance firms is similar to the number recorded in 2023. In almost a third of cases, customers said insurance companies were not sufficiently available and that handling times were too long, particularly for motor and fire insurance claims.

Water damage cover – for example leaking walls – are also difficult cases to settle, as they often affect one or more neighbours.

Meanwhile, long waiting times to receive medical treatment is affecting health insurance claims and, in a new development, the Brussels-based insurance ombudsman is also receiving complaints about pet insurance.

Insurance ombudsman Laurent de Barsy said that receiving so many complaints was a cause for concern, especially as these are cases that insurance companies have not been able to resolve directly with their clients.

“The fact remains that 2024 is the second year in which we have received more than 8,300 requests for action from consumers, which is still quite high,” said de Barsy, highlighting the “further 10% increase in the number of requests for assistance relating to handling and response times and accessibility”, that make up almost 30% of complaints.

For de Barsy, one factor that could explain these difficulties is that insurers are finding it hard to recruit new staff. Another obstacle is digitalisation, with the implementation of new digital tools causing problems in the day-to-day management of claims.

And a third is the amount of jargon customers have to deal with, resulting in his recommendation for more financial education, starting at school, as well as insurance companies paying more attention to writing claims in clear language.

Many problems arise concerning the amount of insurance contribution to be paid, de Barsy added. “Let’s imagine that the surveyor estimates the cost of the damage at €10,000,” he said. "But afterwards, when the customer tries to find a tradesman to carry out the repairs, he sometimes has trouble getting a quote that matches the surveyor’s assessment.

“It’s not that the surveyor deliberately underestimates the amount of damage, or that the trades are overpriced – I think that, in reality, there are many cases that end very well.

“In fact, what sometimes gets in the way, is that the description of the extent of the damage is inadequate or not technically detailed enough for the consumer to be able to go to a contractor with full knowledge of the facts.

“This can lead to a discrepancy between the insurer’s assessment and the estimates the person insured receives from his contractor. The problem often stems from poor communication. The appraisal should be very well reasoned and technically cover all aspects of the case, which does not always happen.”

De Barsy also noted the rise in pet insurance complaints, with pet insurance becoming increasingly popular with dog and cat owners.

"When we look at these products, we still see certain difficulties, in particular cases of exclusion [animals whose illnesses or injuries are not covered by the insurance policy], of all illnesses usually linked to a dog’s breed, such as respiratory illnesses in boxers or bone diseases in labradors and golden retrievers," de Barsy added.

“It’s also worth noting that after veterinary treatment, some insurers – not all – have a strong tendency to cancel policies, especially for dogs that are starting to get old.”