1. © May not be reproduced without permission of Financial Ombudsman Service Ltd 1 Financial Ombudsman Service Alison Hoyland Policy Unit Manager, Corporate Office International Motor Insurance Conference Warsaw 8-9 May 2008

2. © May not be reproduced without permission of Financial Ombudsman Service Ltd 2 Financial Services Authority (regulator) Financial Ombudsman Service (adjudicates on unresolved disputes) Financial Services Compensation Scheme (pays compensation if FSA-authorised firm is unable to pay claims against it) Financial Services and Markets Act 2000 the background… statutory basis from 30 November 2001

3. © May not be reproduced without permission of Financial Ombudsman Service Ltd 3 the background… 5 main predecessor schemes before 2001 for…  insurance companies (since 1981)  banks and building societies  investment and pension product providers  investment and pension advisers  investment portfolio managers

4. © May not be reproduced without permission of Financial Ombudsman Service Ltd 4 complaint not resolved by the following day prompt written acknowledgement 8 week stage final response &/or referral rights the regulatory requirements for businesses… Dispute Resolution: Complaints (DISP)

5. © May not be reproduced without permission of Financial Ombudsman Service Ltd 5 two key principles …  inquisitorial remit  ‘fair and reasonable’ outcome – in all the circumstances of the individual case – having regard to relevant: law/regulations regulators’ rules, guidance and standards codes of practice good industry practice the ombudsman process…

6. © May not be reproduced without permission of Financial Ombudsman Service Ltd 6 3 stages customer contact team 1 casework teams 2 3 ombudsman – final decision the ombudsman process…

7. © May not be reproduced without permission of Financial Ombudsman Service Ltd 7 total enquiries 794,648 enquiries converted to cases 123,089 to casework to business for resolution early resolution phone enquiries 425,942 the ombudsman process… jurisdiction checks written enquiries 368,706 figures for year to 31 March 2008 1. customer contact team

8. © May not be reproduced without permission of Financial Ombudsman Service Ltd 8 > 10% of cases are passed to ombudsmen settlement mediated unable to resolve CCD formal conclusions adjudicator investigation unable to resolve adjudicator assessment to ombudsman the ombudsman process… 2 2. casework teams

9. © May not be reproduced without permission of Financial Ombudsman Service Ltd 9 ombudsman considers case afresh binding if complainant accepts cases adjudicator cannot resolve ombudsman issues final decision complainant rejects decision return for further investigation complainant free to go to court will hold hearing if necessary (very rare) ombudsman – final decision the ombudsman process… no appeal for business

10. © May not be reproduced without permission of Financial Ombudsman Service Ltd 10 redress…  financial loss (+ interest)  non-financial loss: distress and inconvenience, pain and suffering or damage to reputation  £100,000 limit (€125,000)  recommendation above £100,000 not binding  ombudsman may direct a business to take what s/he considers to be ‘just and appropriate’ action  costs awarded only in exceptional circumstances the ombudsman process…

11. © May not be reproduced without permission of Financial Ombudsman Service Ltd 11 all complaints by industry sector… complaints received...

12. © May not be reproduced without permission of Financial Ombudsman Service Ltd 12 insurance complaints by product type… complaints received... 6,009 motor insurance disputes in 2007/08 = 46% increase compared to last year

13. © May not be reproduced without permission of Financial Ombudsman Service Ltd 13 insurance complaints by cause… complaints received... 47% of motor insurance disputes in 2007/08 found in consumer’s favour compared to 30% on average across all other product types

14. © May not be reproduced without permission of Financial Ombudsman Service Ltd 14  www.financial-ombudsman.org.uk  http://www.financial- ombudsman.org.uk/accessibility/polis h/Twoje_zazalenie_a_rzecznik_praw_o bywatelskich.htm our website: information…