Too many brokers failing to report breaches: code committee

Too many brokers are still failing to self-report code of practice breaches, the independent body monitoring compliance has warned in an annual report released today.

Insurance Brokers Code Compliance Committee (IBCCC) Chairman Oscar Shub says overall adherence to the document is good but the level of self-reporting remains a concern.

“Reporting potential breaches and complaints is crucial for improvement. It allows a broker to see what went wrong and where they need to improve,” he said. “However, it appears we still have too many who fail to recognise its importance.”

The report shows 3570 self-reported breaches last year, up from 3328 in 2020, and that 48% of code subscribers self-reported breaches, up from 44%.

The data also says 55% of subscribers self-reported complaints, up from 52% in 2020.

“Simply not reporting does not mean you are doing well. We must overcome the misguided belief that not reporting avoids damage to your reputation,” Mr Shub says in the report’s Message from the Chair.

“True compliance is the goal here and it is important to remember that a strong framework for reporting, recording and monitoring breaches and complaints is essential.”

The annual report relates to the 2014 edition of the code and the IBCCC says it hopes the new version, which begins from the start of next month, will help improve reporting.

“The new code has more specific provisions that will ensure brokers have a very clear understanding of their obligations,” Mr Shub said.

“We have already seen some great improvements from brokers preparing for the new code and we encourage all brokers to make sure they have the right processes in place by the time the new code comes into effect.”

NIBA CEO Philip Kewin says the report shows the value of ongoing reporting and feedback from the IBCCC.

“Reporting breaches is not a bad thing,” he said. “In fact, it can improve internal operations and inbuild a culture of discipline within an organisation.”

The implementation of the new code of practice provides an opportunity for brokers to re-evaluate and refresh their processes, while educating their staff on code provisions, he says.

The IBCCC will publish its Annual Data Report after an annual subscriber engagement program concludes next month.