Complaints about travel insurance to the Financial Ombudsman Service (FOS) increased by more than 58% year-on-year in Q3 2025, with 1,390 cases referred.
Travel is now the third most complained-about product line in UK general insurance, accounting for around 12% of all general insurance complaints received by the ombudsman. More than one in three travel complaints were upheld in the quarter.
Analysis from market intelligence firm Insurance DataLab shows that the rise in travel insurance complaints contributed to an overall increase in cases referred to the FOS. The figures represent one of the highest quarterly totals for travel insurance complaints outside the immediate post-COVID-19 period, when widespread disruption generated a surge in disputes.
Data from Insurance DataLab indicates that over half of all travel insurance complaints referred to the FOS in the 12 months to the end of September 2025 related to a single insurer. While this concentration affects the overall numbers, it does not fully account for the increase, with travel complaints now among the highest in UK general insurance.
Upheld rates also highlight ongoing issues. Over the past five years, the ombudsman upheld more than 40% of travel insurance complaints in over half of all quarters. In Q3 2025, the upheld rate stood at 35%, down from 42% in the same quarter of 2024, indicating that more than one in three complaints were resolved against insurers.
In total, more than 11,250 general insurance complaints were referred to the FOS in Q3 2025, a 13% increase year-on-year and the highest quarterly total since early 2023.
Insurance DataLab co-founder Dan King said the latest data shows travel insurance remains a pressure point for the industry. He added that rising complaint volumes combined with high, though improving, upheld rates indicate ongoing weaknesses in claims handling and policy communication.
“For insurers, the challenge isn’t just about reducing complaints overall, but about preventing them from escalating to the ombudsman in the first place," King said. "That means delivering clearer decisions, better communication and more consistent customer outcomes throughout the claims process.”
