NIBA says new code will help breach identification

6 April 2023

The revised code of practice will provide brokers with more support to recognise breaches when they occur, National Insurance Brokers Association (NIBA) CEO Phil Kewin says.

“We still have a way to go in terms of breach reporting,” Mr Kewin said. “While we are heading in the right direction, I believe the new code, which came into effect last year, will enable subscribers to more readily identify breaches given the clearer wording.”

Mr Kewin made the comments in response to concerns raised by the independent Insurance Brokers Code Compliance Committee (IBCCC) over the industry’s internal compliance process and culture.

IBCCC flagged its concerns following the release of its annual data report for the 2021 calendar year. The report found more than half did not self-report a single breach of the Insurance Brokers Code of Practice and 45% reported zero complaints during the period.

It says the figures may indicate the prevalence of company cultures that fail to value self-reporting and its power to improve standards.

“While reporting zero breaches of the code may sound impressive, it does not necessarily mean a subscriber is doing well,” IBCCC Chair Oscar Shub said.

“It generally means that there are deficiencies in the processes and systems used to monitor compliance.”

He says breaches occur from time to time, even with the best compliance frameworks in place.

“So reporting no breaches does not reflect perfection as much as it reflects poor monitoring and a failure to embrace a culture of reporting,” Mr Shub said.