2026-10-27 · Source: Insurance Business UK
Summary in 3 Points • The FOS is increasing phone contact with consumers due to AI-generated complaints causing inaccuracies and delays. • In the first half of 2026/27, the FOS received 110,500 cases, including 25,800 related to insurance complaints. • New powers allow the FOS to dismiss complaints, focusing on cases it was designed to resolve. --- The Financial Ombudsman Service (FOS) is adapting its approach to handle a surge in complaints, particularly those generated by AI tools. Chief ombudsman James Dipple-Johnstone noted that AI-written submissions often contain numerous inaccuracies, complicating the resolution process. In response, the FOS is increasing telephone outreach to consumers to clarify disputes more effectively. The volume of complaints has risen significantly, with 110,500 cases reported in the first half of 2026/27, including a notable 25,800 related to insurance. The FOS has also been granted new powers to dismiss complaints, allowing it to concentrate on cases that align with its original purpose as an informal alternative to the courts. This shift comes amid concerns about the impact of AI on consumer interactions with insurance, as brokers and insurers must now navigate lengthy and often irrelevant AI-generated complaints. The trend highlights the need for clear communication regarding policy coverage, especially as consumers increasingly rely on AI for both purchasing and complaining about insurance products. AI-generated complaints are complicating the claims process, necessitating clearer communication from insurers and brokers regarding policy details.
AI-generated complaints are complicating the claims process, necessitating clearer communication from insurers and brokers regarding policy details.