New broker code ‘will help change culture’

The new Insurance Brokers Code of Practice, which should be implemented by November, will be key to changing culture, the National Insurance Brokers Association (NIBA) Convention heard today.

The conference kicked off in-person in Melbourne, with a focus on the regulatory environment.

This will be followed by events in Adelaide on Friday, Perth on February 14 and Brisbane on February 16. The convention wraps up in Sydney on February 21 when the Gala Dinner will also be held.

New Chairman of the Insurance Brokers Code Compliance Committee Oscar Shub told delegates at Crown Conference Centre today that the upcoming revised code will play an important role in changing culture at brokerages to truly focus on customer needs.

The new code, which has faced significant delays, is expected to be implemented in November.

He also reiterated warnings about the lack of self-reporting of breaches at some broking firms. He says there is a “general culture” of believing it is better not to self-report to “avoid giving yourself a bad name”.

“On the contrary. It is not correct that if you don’t self-report you are ok.”

Delegates also heard from Australian Financial Complaints Authority lead ombudsman insurance Emma Curtis.

She says while there are relatively few complaints against brokers, broker record keeping is a key concern.

“We often find broker records are limited, scant or non-existent,” she said.

Rhys Bollen, Australian Securities and Investments Commission Senior Executive Leader, Insurers, told the conference that the covid pandemic has been “a sharp test” of insurance.

He said brokers and insurers will be expected to proactively contact clients once business interruption test cases are finalised.

“We don’t want to see any more delays,” he said.

“It should not have come to this,” he added, saying that it is “regrettable” that policies were “not drafted well enough in the first place”.