Complaints against insurance brokers have risen because of poor communication, according to New Zealand’s financial dispute ombudsman.

Financial Services Complaints investigated 32 grievances against brokers in 2024-25, up from 27 and 17 in the previous two years.

“With insurance brokers, many complaints stem from poor communication,” a spokesperson said. “Examples include failing to pass on important information, failing to explain the extent and limits of cover, and not taking the time to fully understand the client’s business and insurance needs and specific requirements. This is particularly the case in small business complaints.”

FSC has noted a rise in complaints from small companies, especially about loans and insurance products.

“This likely reflects the tough trading environment many small business owners are facing,” ombudsman Susan Taylor said.

“They’re under pressure and we’re seeing that come through in the disputes they bring to us.”

FSC received a total of 1469 complaints in 2024-25, up from 1426 a year earlier and double the number recorded five years ago.

Seventy-three complaints related to insurers and 64 to fire and general insurance brokers, data provided to insuranceNEWS.com.au shows.

“We received 137 complaints about insurers and brokers, and 79 were investigated by us,” the spokesperson said.