Latest figures from the Insurance Brokers Code Compliance Committee (IBCCC) show that one third of participating brokers self-reported code breaches last financial year, down 3% on the previous year.
Last week the IBCCC released its annual report, offering useful insights into broker client conflict and code management processes.
The committee assessed 466 self-reported code breaches, of which only five were significant breaches for service standards, with actions to address these either completed or currently being undertaken.
The IBCCC also analysed 321 instances of client complaints handled by brokers’ internal dispute resolution teams.
There was a 4% increase in brokers that reported client complaints, with 60% offering data to the IBCCC regarding their internal dispute resolutions process.
Of those complaints, 11% were not resolved within the required 45-day period, while 21% of total complaints were resolved in favour of the client and 14% resolved in mutual agreement.
IBCCC Code Compliance and Monitoring General Manager Sally Davis says that it is important for brokers not to ignore or hide this type of data.
“Don’t be afraid to get a complaint from a consumer and deal with that complaint, rather than sweeping it under the carpet or implying that the business never has any issues of that nature, because that’s unlikely to be the case,” Davis says.
Davis says that communication is often key to resolving or minimising dispute, and goes a long way to avoiding code breaches, too.
“Quite a bit of work that a broker does is verbal communication, in which case they need to always keep in mind that they are the professional in the relationship, and that they should be the one then who should be putting it in writing,” Davis says.
“It doesn’t need to be formal, but just some methodology for putting correspondence in writing to ensure that communication is always clear.”
Revisit the Insurance Brokers Code of Practice here.