The number of written complaints to Insurance Brokers Disputes (IBD) is continuing its two-year decline. The facility’s 2003 annual report says the downward trend is due to greater broker vigilance in the internal dispute resolution process and a desire to avoid having a formal complaint registered.

However, the report notes an average of 358 calls a month compared with 336 in 2002. These involved existing complaints, telephone enquiries and complaints, broker referrals on hard-to-place business or specific risks, referrals to other complaints schemes and relevant bodies, and general enquiries.

The report shows that 67% of complainants waited three months and longer after the claim/incident before lodging a complaint in writing, and 42% of brokers responded to written complaints to IBD within a week.

Fifty-one per cent of complaints were received from small businesses (50% in 2002) and the rest from domestic consumers. IBD says the $5000 limit for complaints from small business (unless brokers agree to waive it) caused many complaints to be dismissed.

There was an improvement in 2003 in the number of brokers informing complainants of their right to have matters determined by IBD (34% compared with 28% in 2002).

Twenty-eight per cent of complaints involved cancellation and refund, many of them arising from a lack of understanding of policy cancellation procedures. Problems with renewal of policies prompted 21% of complaints (26% in 2002).

Thirty-two per cent of claims involved amounts under $1000, 28% involved amounts between $1001 and $5000, and 7% amounts between $25,001 and $50,000.