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Brokers are better than direct Insurers

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Did you know that the Financial Ombudsman Service reports that it handles more than 25,000 disputes annually? Did you also know that insurance brokers are responsible for only a tiny fraction these?
The Financial Ombudsman Service’s 2011-2012 annual review revealed it has accepted 25,298 disputes into its formal dispute resolution process, where a customer had not been able to resolve a dispute directly with their financial services provider. This was up 24% on the previous year.
When broken into sectors, general insurers were responsible for 7,591 complaints, second only to banks who accounted for 12,210. Life insurers also had 851 complaints.
General insurance brokers were responsible for a tiny 123 complaints. This means that general insurance brokers accounted for less than 0.5% of all complaints received by the Financial Ombudsman Service in this 12 month period. General insurers were responsible for 30%.
Underwriting agencies had just one complaint.
Insurance brokers also performed better than other finance professionals such as financial advisors/planners which had 949 complaints. The managed investments scheme (MIS)/fund manager (375), non-cash payment system providers (433) and debt collector or buyer (794) were also higher than the complaints on Insurance Brokers.
The results further reinforces the view that our clients are overwhelmingly in better hands when using an insurance broker. It is also consistent with previous year’s Financial Ombudsman Service annual reviews too. Insurance Broking is rightfully becoming highly professional, reliable and provides a valuable service in cutting through the complicated world of insurance and delivering the right results for our clients because of our access to the wider Insurance market.
 

Last changed: Nov 28 2012 at 9:00 AM

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