The 2022 Insurance Brokers Code of Practice (the Code) is currently under review. The National Insurance Brokers Association (NIBA) is actively seeking engagement with the review from the consumer sector and has provided the Consumers’ Federation of Australia (CFA) with funding to support the consultation. The Independent Reviewer, Phil Khoury (CKR Consulting), is examining several key areas to ensure the Code remains fit for purpose and aligned with best practices. These areas include:
- Identifying any parts of the Code that no longer align with community expectations.
- Reviewing provisions that may impose unnecessary administrative burdens without sufficient benefit to clients.
- Assessing the Vulnerable Client provisions in light of recent insights, including findings from Deloitte’s review of insurers’ flood claim handling and advancements in best practices.
- Aligning the Code with changes to the General Insurance Code of Practice and addressing any inconsistencies in client experiences between direct and intermediated insurance channels.
- Ensuring the Code’s alignment with existing laws and regulations, including upcoming changes stemming from the government’s response to the Quality of Advice Review.
- Enhancing service standards and addressing issues within strata insurance.
To ensure the review process is thorough and meaningful, the following five principles will guide the review:
- Efficiency: Ensuring the Code enhances client outcomes while minimising operational complexity.
- Transparency: Conducting the review in an open and transparent manner.
- Modernisation: Updating the Code to meet or exceed current regulatory requirements and align with evolving client needs.
- Accessibility: Simplifying and improving the Code’s clarity to enhance understanding, while adhering to regulatory frameworks.
- Flexibility: Balancing the needs of all clients, including sophisticated wholesale and retail clients, and encouraging best practices without over-prescription.
All feedback is due by 11 April 2025. If you are interested in working on CFA’s written submission, please contact info@consumersfederation.org.au. For more information on the review itself please see the page on NIBA’s website here.