Insurance Brokers Disputes (IBD) Referee David Letcher has pointed out a number of areas of brokers’ operations where problems frequently arise. Writing in the just-released IBD annual report, Mr Letcher says complaints often arise as a result of changes to the risk or even the underwriter.

“IBD still receives complaints mainly because the documentation is inadequate and there is a lack of explanation or detail given to the insured.”

The new company – IBD became an independent entity with consumer and industry representation after gaining Australian Securities and Investments Commission approval late last year – recorded a 23% increase in phone calls last year to 4031. Nearly 345 complaints forms were sent out to consumers, but only 155 written complaints eventuated – a drop of 20% on 2001. Not surprisingly, 12% of the complaints were about public liability, compared with 1% in 2001. Motor vehicle insurance was the biggest area of complaint (27%).