The Insurance Regulatory and Development Authority of India (Irdai) reported that insurance ombudsmen resolved 41,055 grievances in 2025-26 (FY26). According to reports from Business Standard, the data reveals that total complaints with the ombudsmen nearly doubled in six years since FY20, indicating a significant increase in customer dissatisfaction with insurance services. The latest data confirms this trend continues, with recent reports showing the surge in complaints has prompted regulatory attention and prompted Irdai's involvement in addressing these customer grievances.
As reported by Business Standard, health insurance is driving a surge in insurance complaints, with grievance filings rising sharply despite the segment accounting for a relatively small share of premiums. This suggests that health insurance customers are experiencing higher levels of dissatisfaction compared to other insurance segments, even though health insurance represents a smaller portion of the overall insurance market. Recent market developments show that extreme heat and erratic weather conditions are fueling sharp rises in demand for parametric insurance covers, highlighting the growing complexity in health insurance products and customer expectations.
The surge in complaints has prompted regulatory attention, with Irdai's involvement indicating the scale of customer grievances. According to Business Standard, the authority's ombudsmen system has been actively addressing these issues, suggesting that the insurance industry is taking steps to address customer concerns and improve service quality across the sector. Recent regulatory developments include Irdai's completion of fresh regulations and amendments to existing insurance norms within six months of implementing the amended insurance law framework, demonstrating the authority's proactive approach to addressing industry challenges.
