Lord Hunt is investigating claims that customer complains are not handled properly in the insurance industry, whose customers rely on for home insurance, car insurance and many others.

The group says that the current system is unfair to insurers and that more needs to be done to protect them.

IIB director general, Andrew Paddick, added: “I have always found the FOS officials and staff to be very pleasant and honourable people, who do endeavour to be fair and reasonable, but natural justice in a civilised society is another matter altogether and with regard to the FOS remit it is something the politicians have constantly fudged, preferring instead to discriminate in favour of consumers, including those who are habitual complainers of no substance. The rules need looking at in the context of mandatory membership and this is something I expect Lord Hunt (as a lawyer himself) to address.”