2025 CII Certificate in Insurance Practice Test: Insurance Claims Handling (IF4)

In the context of dispute resolution, the role of the Financial Ombudsman Service (FOS) is to resolve disputes and provide recommendations. The FOS serves as an impartial entity that addresses complaints between consumers and financial service providers, including insurance companies. Its primary function is to review cases, facilitate communication between involved parties, and ultimately issue decisions or recommendations based on its findings.

The FOS considers the merits of each case, taking into account the evidence and arguments presented by both parties. By doing so, it aims to provide fair resolutions that adhere to regulations and consumer protection standards. The decisions made by the FOS are recommendations that the financial service provider is expected to follow, although they are not legally binding.

This role is distinct from merely offering mediation services, enforcing legal standards, or acting in fraud investigations, as those are not the primary functions of the FOS. Its emphasis on resolving disputes and providing recommendations is essential for maintaining trust in the financial services industry and ensuring that consumer grievances are addressed effectively.