The Insurance Brokers Code Compliance Committee has now published its Annual Review for 2019-2020.
The National Insurance Brokers Association (NIBA) CEO Dallas Booth urged all members to have a good look at the Annual Review, and to note the suggestions and recommendations on areas where improvements in implementation of the Code of Practice need to be considered.
“Who, in their wildest imagination, could have created a ‘risk model’ equivalent to this reality?” noted Michael Gill, the Chair of the Committee which oversees the Insurance Brokers Code of Practice (the Code).
With a raft of new laws and regulations stemming from the Financial Services Royal Commission, another bushfire season looming and economic uncertainty, Gill said that the Code has never been more relevant in guiding decision-making. “Australia needs an insurance broking industry in which it can have confidence, which is able to reinstate and indemnify, which acts fairly … and which is strong in every sense.”
Booth said, “We also note the comments from the Code Committee regarding the time being taken to complete the review of the Code.”
“NIBA meets regularly with the Code Compliance Committee, and the Board meets formally with the Committee at least once each year. The Committee has been provided with regular updates regarding the progress of the Code of Practice review.”
NIBA has acknowledged the Code review is taking longer than anticipated. There are a number of key factors that have led to this position, including the fact that the Royal Commission took place at the time the Code review commenced.
He added, “NIBA always wanted to take account of the Royal Commission findings and recommendations in any revised Code. Also, NIBA has always wanted to ensure the NIBA Code operates in a manner that is consistent and complementary with the General Insurance Code of Practice. The GI Code was formally issued earlier this year, and we are now able to take that Code into account.”
There have been a number of other contributing factors to the delay in progress of the Code review, not least being the impact of COVID-19 on all areas of activity in insurance broking and within NIBA itself.
In recent months, the NIBA Board has given extensive consideration to the current Code, and to the areas where change is needed. The Board has also taken account of initial rounds of consultation by our independent Code reviewer, and developments in codes of practice across the financial services sector more broadly.
Having completed the majority of this work, the Code review will now progress, and NIBA remains committed to full external consultation with all interested parties as this occurs.
You can download a copy of Annual Review here.