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Issue 23 - October 2015

The FOS Approach to Insurance Broker Disputes


Disputes are often lodged with FOS where a consumer alleges that the general insurance broker (financial services provider or FSP) failed to arrange adequate insurance or fully informed them of the terms of cover.

This paper will explain how FOS approaches such disputes and will be useful for:

  • FSPs who provide general insuring brokering services
  • consumers and consumer representatives who have a dispute involving a general insurance broker
  • anyone else who wants to understand how FOS approaches this issue.

An insurance broker enters into a professional relationship with a consumer and therefore has a duty of care when acting on behalf of a consumer.

In determining whether the FSP has met its duty of care, FOS considers if the FSP has:

  • appropriate practices and processes in place to fully canvas and record the consumer's insurance needs
  • undertaken reasonable efforts to arrange a policy suitable to the consumer's needs
  • appropriately informed the consumer of any inability to arrange the cover sought or of a relevant exclusion that impacts their insurance needs
  • provided advice to the consumer to ensure they are able to make an informed decision about their insurance needs
  • established the terms of agreement between the parties.

Read more about the FOS Approach to Insurance Broker Disputes.

Visit to see all the available FOS Approach documents.