Brokers’ code compliance revealed

The latest figures from the Insurance Brokers Code Compliance Committee (IBCCC) show that less than a third of participating brokers self-reported Code breaches in the year.

“The Code of Practice, and the work of the Code Compliance Committee, is a clear demonstration of this industry’s commitment to high levels of professionalism, with the interests of the client being paramount,” says Dallas Booth, NIBA CEO. “That is exactly what governments and regulators – and the broader community – expect.”

There were 862 self-reported code breaches, with 23 per cent related to buying insurance, according to the latest Annual Review of the Insurance Brokers Code Compliance Committee 2015-2016.

There were 11 significant breaches reported in 2015.

“Significant breach reporting means that problems are being identified and remediated, which provides restitution for affected customers, improves future services and benefits the insurance broking industry,” said Michael Gill, independent chair of the committee.

In terms of resolving disputes, 52 per cent self-reported 1,023 complaints handled through internal dispute resolution process. Some 26 per cent were resolved by mutual agreement and 25 per cent were resolved as an apology, explanation and/or acknowledgement of feedback.

The IBCCC adds that most (79 per cent) were resolved within 21 days, an improvement from the year before.

Booth points out there are two important points to note from the report: “First, internal dispute resolution is working to resolve the great majority of issues and concerns relating to possible breaches of the Code of Practice. Second, and more importantly, the number of matters being investigated by the Code Compliance Committee is very small – too many, but still very small.”

The Insurance Brokers Code of Practice is an important statement by NIBA members of their commitment to high standards of client service, he reiterated. “It is clear evidence of the industry’s longstanding commitment to quality, professional conduct and service.”

And Booth reminded brokers: “The Code has to be lived, applied and promoted across the industry, to show clients that brokers really are serious about high standards of professional behaviour.

“Having the Code independently monitored and enforced also sends a strong message to clients, the community, regulators and governments that this industry takes its commitment to professionalism very seriously indeed.”

Read the full report here.