The absence of effective internal mechanisms to deal with complaints may be one factor contributing to the larger number of complaints against the insurance companies. Data from the Ombudsman’s Office point to a very impressive resolution rate of 94 per cent in respect of commercial bank complaints and 97 per cent in respect of insurance complaints.
Mr. Douglas Camacho alluded to it and I share the view that the large number of complaints against insurance companies compared to the banks may have much to do with the following three factors: i) the more robust regulatory regime concerning the commercial banks, whose legislation is more current than that of the insurance sector ii) a stronger compliance culture resulting from decades of central bank supervision, compared to only seven years for the insurance sector and iii) the lower capital and entry requirements faced by the insurance sector and particularly the general companies.