We use cookies to improve your website experience. To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. By continuing to use the website, you consent to our use of cookies. Close

CHAPTER 1 BACKGROUND

Insurance Law and the Financial Ombudsman Service

1 BACKGROUND HISTORY AND FORMATION OF THE FOS 1.1 The Insurance Ombudsman Bureau (“IOB”) was founded in 1981 by three leading insurance companies as a type of alternative dispute resolution service outside of the court system, to resolve complaints by customers against insurers who were members of the scheme. Complaints were to be dealt with independently, privately and without charge to the complainant. It was a voluntary, industry, non-governmental initiative, backed by the National Consumer Council, at a time when there was no regulator for the conduct of investment or insurance business. Most insurers opted to join the scheme. The law did not have to be applied strictly in the interests of resolving the disputes fairly. If this resulted in any occasional rough justice for insurers, it was outweighed by the cheap and effective alternative dispute resolution service which the IOB offered, particularly for small insurance disputes which were uneconomic to run in the court’s litigation system, especially in a time before the Woolf reforms of court procedures.

The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, please enter your details below to log in.

Enter your email address to log in as a user on your corporate account.
Remember me on this computer

Not yet an i-law subscriber?

Devices

Request a trial Find out more