An absolute avalanche of regulations are coming the way of insurance brokers warns NIBA as the government indicates 42 pieces of legislation are being considered.
At the NIBA 2019 session on the Royal Commission and Regulatory updates, NIBA CEO, Dallas Booth and Legal Counsel, Mark Radford said that there are an enormous number of proposals coming through regarding Royal Commission recommendations and other financial sector reforms, and that sheer number and the complexity in each of them is extremely challenging for all.
This will continue for the next two years. Booth said that as these come through NIBA will be examine them carefully and communicate regularly with members. He emphasised that nearly all of these proposals will affect the day-to-day operations of brokers, “We don’t know how exactly yet but they will.”
Booth explained, “Hopefully not all of these legislation will affect general insurance brokers directly but we are concerned that they might have unintended consequences for intermediaries.”
Radford cautioned brokers, “Don’t say we didn’t warn you.” Both Booth and Radford urged those in the room to get rid of toxic remunerations structures, if they had any.
The legal eagle explained, “The real issue we face with a lot of these new regulations is subjectivity and we need to tread very carefully in analysing every bit of information that comes our way.”
Booth and Radford urged brokers to pay attention to NIBA communications via the newsletter Broker Buzz and the Insurance Adviser magazine.