Aon New Zealand continues to sit outside the broking industry’s peak body, the Insurance Brokers Association of New Zealand (IBANZ), in a long-running dispute over a membership fee increase.

The broker, one of the two largest groups in the New Zealand market, is not listed in the IBANZ register of members.

However, IBANZ CEO Gary Young has declined to discuss the matter, beyond saying an insuranceNEWS.com.au report on Aon’s ouster in October last year “led to some pretty fiery things being said”.

Aon is no longer listed on the IBANZ register of member companies, and Informed sources with knowledge of the matter confirmed Aon has not backed down on its refusal to pay a $NZ45,000 ($40,814) corporate membership fee after it was raised last year from $NZ29,500 ($26,756).

The US-based broker’s membership was cancelled last year, and its representation on the IBANZ board withdrawn. This means Aon-employed brokers are also not members of their peak representative body.

insuranceNEWS.com.au understands the three other major brokerages in New Zealand are paying the increased fee.

The impasse is causing some frustration among senior IBANZ members, who say the association’s work is being hamstrung by a “petty issue”.

“Aon made about $NZ40 million ($36.27 million) in profit last year, yet it won’t pay $NZ45,000 to contribute to brokers being adequately represented,” a senior broker contacted by insuranceNEWS.com.au said.

“We’re dealing with some very big issues such as increased regulation and the fire services levy, and it’s time Aon got on board and carried its share of the weight.”

However, insuranceNEWS.com.au understands Aon has offered to pay a “fee” to IBANZ to help pay for lobbying services only.

Mr Young declined to discuss whether such an offer exists and whether it has been agreed to.