Original media release here, Insurance Brokers Code Compliance Committee, 31/08/2023.
In its Annual Report, the Insurance Brokers Code Compliance Committee (IBCCC) welcomed an increase in the number of brokers that reported breaches and complaints, but had concerns that too many continue to report zero breaches or complaints.
The report noted the increase in the number of Code subscribers reporting breaches follows extensive work from the IBCCC to encourage better reporting practices.
Chair of the IBCCC, Oscar Shub, said that the Committee’s work was having an impact.
“Seeing our work deliver better reporting practices among Code subscribers is rewarding. It shows that our efforts to improve this area have been worthwhile,” Mr Shub said.
“Improvements are commonly gradual and often require a shift in organisational culture, so this small step forward is a measure of success for us.”
In recognising the increase, the Annual Report also noted that many still underreported their breaches or complaints or reported none at all: 175 brokers reported no breaches, while 152 reported no complaints in the 2022 reporting period.
Mr Shub urged these Code subscribers to look to their counterparts and improve their own reporting practices.
“While we were happy to see more report their breaches and complaints, it was disappointing to see so many continue to underreport or report zero,” Mr Shub said.
“This concern remains a serious one. We have put great effort into encouraging better attitudes and practices to compliance and reporting, with some success. But, unfortunately, not all brokers have taken this message on.”
Mr Shub emphasised that reporting zero breaches and complaints is indicative of an organisation lacking the right systems and processes in place to monitor compliance with the Code of Practice.
“Simply not reporting breaches and complaints is no shortcut to perfect compliance and a good reputation,” Mr Shub said.
The lack of reporting continues a worrying trend within the industry and one that remains a major focus for the IBCCC.
The Annual Report is the IBCCC’s first since the new Code came into effect on 1 November 2022, and it highlights the work the IBCCC undertook in helping Code subscribers implement the new Code, including its obligations for clients experiencing vulnerability.
Mr Shub noted that 2022 was a turbulent year for both brokers and their clients, and the work of the IBCCC helped ensure compliance with the new Code and good outcomes for clients.
“Over the last year, with increased environmental catastrophes and cost of living pressures, we have seen that vulnerability can affect anyone,” Mr Shub said.
“Our work helping Code subscribers integrate the new Code led to an impressive preparedness across the industry.
“Brokers, for the most part, showed that they understood vulnerability and were well placed to meet a diverse range of stakeholder needs. This is a good result that will lead to positive outcomes.”
The IBCCC’s Annual Report can be found by clicking here.