Public complaints to Bank of Russia rise significantly in Q2

In 2016 Q2, the Bank of Russia received over 28,000 complaints against non-bank financial institutions, an increase of 38% compared with Q1 (20,200 complaints). The data were provided in the Report of the Service for Protection of Financial Services Consumers and Minority Shareholders.

The proportion of complaints against insurance agents reached 80% in the total number of complaints against non-bank financial institutions. Half of the remaining 20% is constituted by complaints against microfinance organisations. The proportion of complaints against management companies, non-governmental pension funds and specialised depositories stood at 3%, against securities issuers — also 3%. The proportion of complaints against consumer credit cooperatives was a mere 1% of the total number of applicants asking the regulator for help.

Among the complaints against insurers problems related to the compulsory motor third party liability insurance (OSAGO) are traditionally in the lead (87%). The number of complaints about the refusal to conclude an OSAGO agreement rose threefold compared with Q1. Over half of the claims (55%) pertain to the bonus-malus coefficient application. Citizens also complain about the lack of blank sheets at the offices of insurance companies (24%) and the imposition of extra services. The number of complaints against the imposition of services while concluding an OSAGO agreement increased 2.4-fold in 2016 Q2 as compared with Q1.

Moreover, the number of phone calls to the Bank of Russia call centre with complaints about insurance companies’ avoidance to conclude an OSAGO agreement doubled.