Brokers Tackle Compliance Surge Amid New Regulations

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

According to insuranceNEWS.com.au, the association contends that the recent uptick in breaches was expected as a result of numerous new obligations embedded within the revised 2022 code. According to NIBA, this demonstrates an industry adjusting to more rigorous expectations.

Yesterday, the Insurance Brokers Code Compliance Committee (IBCCC) released its annual data report, highlighting an increase in breaches. Specifically, 63.4% of insurance brokers reported breaches in the preceding year, up from 55.2% in 2022. The total number of breaches escalated by 36% to 4642, impacting 794,000 clients as opposed to 412,081 the prior year.

A particular area of concern flagged by the committee was remuneration disclosure, with 106 breaches reported compared to just 23 cases a year earlier.

"The data in our report should be seen as a wake-up call," said committee chair Oscar Shub. "Brokers must emphasize robust compliance and reporting procedures to enhance service quality and maintain client trust."

On the rising remuneration breaches, Mr. Shub added, "This significant increase signals that brokers must improve their practices."

NIBA has expressed encouragement over the growing trend of brokers reporting their breaches. The body noted a more than 26% increase in the number of subscribers self-reporting since 2020.

"Given the considerable number of new obligations introduced with the revised code, an increase in reported breaches was anticipated," NIBA explained. "The data from the IBCCC shows that the profession is actively considering and adapting to higher standards, aiming to better fulfill client needs."

While NIBA acknowledges ongoing needs for improvement, it plans to collaborate with subscribers and the IBCCC over the coming year to foster greater transparency and enhance compliance reporting habits.

Providing a contrastive perspective, Insurance Advisernet MD Shaun Standfield expressed disappointment in the IBCCC’s critical stance on compliance outcomes. He noted, “The committee should recognize our efforts in promoting breach awareness and reporting. It’s disheartening to receive mixed signals when we've almost tripled reportable breaches over three years."

Mr. Standfield cautioned that such criticism might dissuade brokers from reporting breaches faithfully. "We do not want our advisers to backtrack on reporting for fear of negative commentary from the IBCCC. Despite the surge in reported breaches, brokers work diligently to serve their clients every day," he concluded.

Published:Saturday, 28th Sep 2024
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

New Crane Cover Highlights the Insurance Gap for High-Risk Trades

24 Jun 2026: Paige Estritori

A new specialist insurance product for Australian crane and rigging operators is a timely reminder that not every business fits neatly into a standard policy box. ARTes Specialty, working with wholesale provider Mobius Insurance, has launched an integrated crane and rigging policy for the local market, adding to its earlier Australian offerings for commercial loggers and contractors’ plant and equipment. - read more

IAG Resolves $4 Billion Greensill Lawsuit

17 Jun 2026: Paige Estritori

Insurance Australia Group (IAG) has reached a confidential settlement in the $4 billion lawsuit initiated by Greensill Bank AG and its insolvency administrator. This legal action stemmed from disputes over insurance coverage related to Greensill's financial products. - read more

Decline in Market Share for Australian Insurers' Business Packages

17 Jun 2026: Paige Estritori

A recent analysis by Macquarie has revealed a significant decline in the domestic business package market share held by Australian insurers, dropping to approximately 48% in the fiscal year 2025 from nearly 67% a decade ago. - read more

ACCC Halts IAG's Bid to Acquire RAC WA's Insurance Arm

10 Jun 2026: Paige Estritori

The Australian Competition and Consumer Commission (ACCC) has recently opposed the proposed acquisition of RAC WA's insurance operations by Insurance Australia Group (IAG). This decision stems from concerns that the merger would significantly reduce competition within Western Australia's insurance sector, potentially leading to higher premiums and diminished service quality for consumers. - read more

BizCover and Zurich Collaborate to Enhance Professional Indemnity Insurance for SMEs

10 Jun 2026: Paige Estritori

BizCover, an online business insurance platform, has expanded its professional indemnity (PI) insurance offerings through a new distribution agreement with Zurich Australia. This partnership enables small and medium-sized enterprises (SMEs) with annual revenues under $7.5 million to access Zurich's PI insurance directly via the BizCover website, with coverage limits of up to $10 million. - read more

Click for more Insurance News