One of the founders of the British Insurance Brokers' Association (BIBA) healthcare focus group has resigned claiming the organisation does not cater for smaller brokers.
The organisation has recently been unsettled by problems with its private medical insurance (PMI) scheme and several other high profile departures.
Despite the upheaval, BIBA insisted it was business as usual for the focus group and denied the body favoured larger intermediary organisations.
Four years ago Susie Colley, managing director of West Country Healthcare, said four years ago she approached BIBA along with Paul Walker of Essential Health to create the focus group.
However, Colley told COVER she was not happy with the current direction of the group and felt former head of technical services Peter Staddon's departure had been related to the problems with the PMI scheme.
In her resignation letter, Colley wrote: "I personally had hoped, over 4 years ago, that BIBA would be the tiger that would defend the smaller broker against the idiosyncratic issues that the FSA occasionally find to make our lives more difficult.
"Regrettably it now appears that not only is BIBA a toothless tiger it clearly is a puppet that dances to the FSA tune. There has seemed to be a hidden agenda and I perceived that we were never taken seriously.
"Despite having the Focus group, the debacle over PMI scheme and other aspects of the ill thought out policy, clearly demonstrated that all is not well within BIBA," she added.
Colley also raised concerns that previous chairmen of the group had not been supported when flexing their muscles.
She concluded that "the focus group would be an ineffectual puppet without Staddon to support and guide" it.
These claims were dismissed by Eric Galbraith, chief executive of BIBA, who maintained the group would continue its work and also thanked Colley for her dedication.
"I'm aware Susie has resigned and have responded to all the issues she raised," he said.
"I'm disappointed and sorry that she's unhappy with it but BIBA's inititive on healthcare will continue.
"We have a very clear plan of how to proceed and have an agenda to deal with the issues that I think need to be addressed in the healthcare and PMI sector," he added.
Galbraith also noted the suggestion that Peter Staddon's departure was related to the disruption of the Jelf and Axa PPP supported PMI scheme was incorrect.
"The assumptions are not right and people are jumping to conclusions here," he said.
"I do take note of all the comments that I'm receiving and we are pursuing issues in this sector that are really important to the intermediary sector but it will not diminish because of Peter or Susie's departure."
Paul Walker, principal of Essential Health, did not wish to comment on most of the issues raised, but did call Staddon's leaving a big loss.
"Peter has become one of those faces that everybody associates with the UK insurance industry so it's a big loss in that respect," he said.
