If you have a dispute with an insurer that you cannot resolve, you are not without recourse. The Financial Ombudsman Service exists to settle such disputes independently and free of charge. This guide explains how to complain and use the Financial Ombudsman in plain English, step by step.
What the Financial Ombudsman Service is
The Financial Ombudsman Service is an independent body set up to resolve disputes between consumers and financial firms, including insurers, when they cannot sort the problem out between themselves. It is free for consumers to use, and impartial, looking at both sides and deciding what is fair and reasonable. It provides a way to challenge a firm's decision without going to court, which is why it is so valuable when a complaint cannot be resolved directly.
Complain to the firm first
Before the Ombudsman can get involved, you must first give the firm a chance to put things right by complaining to them directly. Set out your complaint clearly, what went wrong and what you want them to do, and keep a record. The firm has a set period, usually up to eight weeks, to investigate and give you their final response. Most complaints are resolved at this stage, so always start with the firm.
When you can go to the Ombudsman
You can take your complaint to the Financial Ombudsman if the firm's final response does not resolve it to your satisfaction, or if the firm has not replied within the time allowed, usually eight weeks. There is normally a time limit for referring it on, commonly within six months of the firm's final response, so do not delay. The Ombudsman will then look at your complaint independently.
What the Ombudsman can do
The Ombudsman investigates the complaint, considers both sides, and decides what is fair and reasonable in the circumstances. If they uphold your complaint, they can require the firm to put things right, which may include paying or reconsidering a claim, and awarding compensation up to a substantial limit. A final decision by the Ombudsman is binding on the firm if you accept it, giving real weight to the outcome.
What it covers
The Ombudsman can consider a wide range of complaints about insurance, such as a claim being unfairly rejected or underpaid, poor handling or delays, mis-selling, or unfair treatment. It looks at whether the firm acted fairly and in line with the rules, including the standards on good customer outcomes, as our guide to Consumer Duty and fair value explains. If your complaint is about being treated unfairly, it is likely something the Ombudsman can consider.
It is free to use
A key point is that the Financial Ombudsman Service is free for consumers. You do not need to pay, and you do not need a lawyer or a claims company to use it, though you can if you wish. Using it yourself keeps any compensation entirely yours. Because it is free and independent, it offers a genuine route to challenge a firm without cost or the stress and expense of legal action.
How to complain effectively
To give your complaint the best chance, be clear and factual. Explain what happened, why you think it was wrong, and what you want, and support it with evidence such as your policy, correspondence and reference numbers, as our guide to why claims get rejected explains. Keep copies of everything, stay calm and persistent, and follow the process. A well-organised, evidenced complaint is far more likely to succeed.
What the Ombudsman cannot do
The Ombudsman has limits. It generally cannot consider a complaint until the firm has had its chance to respond, and it deals with disputes within its scope rather than every grievance. It is not a route to challenge a fair decision simply because you dislike the outcome, nor a substitute for the courts in every matter. Understanding what it can and cannot do helps you use it for the disputes it is designed to resolve.
Time limits to be aware of
There are time limits for using the Ombudsman. You normally need to refer your complaint within six months of the firm's final response, and there are longer overall limits relating to when the problem occurred or when you became aware of it. Missing these limits can mean losing the right to use the service, so it is important to act promptly once you have the firm's final response rather than letting time slip by.
How a case is decided
When the Ombudsman considers a complaint, it looks at the evidence from both sides and decides what is fair and reasonable in all the circumstances, taking account of the law, the rules, and good practice. It is not bound to side with either party and reaches an independent view. This focus on fairness, rather than narrow technicality, is part of what makes the service valuable for ordinary consumers facing a larger firm.
Accepting or rejecting the decision
If the Ombudsman makes a final decision and you accept it, it becomes binding on the firm, which must then do what it says. If you reject it, you are generally free to pursue other options, such as court, though that has its own costs and risks. Understanding that an accepted decision binds the firm, but that you are not forced to accept it, helps you weigh your options at the end of the process.
Getting help with a complaint
You can use the Ombudsman yourself, for free, and you do not need to pay anyone to do it for you. If you want help, free sources of advice exist, such as consumer advice services, which can guide you without charge. Be cautious about claims companies that take a fee, since you can usually do it yourself and keep any compensation in full. The process is designed to be accessible to ordinary people.
A genuine, free route to fairness
The reassuring message is that you are not powerless against a large firm. The Financial Ombudsman Service gives ordinary people a free, independent route to challenge an unfair decision, and its accepted decisions bind the firm. Complain to the firm first, keep good records, refer it on within the time limits if you are still unhappy, and present your case clearly. Many disputes are resolved this way, without cost or the courts.
In short
The Financial Ombudsman Service independently resolves disputes between consumers and financial firms, free of charge. Complain to the firm first and let them give a final response, usually within eight weeks. If you are still unhappy, refer it to the Ombudsman, normally within six months. They decide what is fair, can require the firm to put things right and pay compensation, and their accepted decision is binding. A clear, evidenced complaint helps most.
Where to get help and next steps
Read our guides to why claims get rejected, non-disclosure, and, if your insurer has failed, the FSCS. This is general information, not financial or legal advice.