Minister confirms that broker commissions are safe
Minister confirms that broker commissions are safe | Insurance Business Australia
Insurance News
Minister confirms that broker commissions are safe
“There’s been no change to our position”
Insurance News
By
Daniel Wood
The Minister for Financial Services, Stephen Jones (main picture) has said that broker commissions are safe. On Tuesday morning, at the National Insurance Brokers (NIBA) Convention in Adelaide, Jones provided delegates with a government policy update.
“The government made a decision on that,” said the Minister in response to a question from Insurance Business asking for his view, given that some industry stakeholders, including the Australian Competition and Consumer Commission (ACCC), continue to call for a ban.
“There’s been no change to our position”
“We accepted the recommendation of the Quality of Advice Review and that’s been reflected in what we’ve done through the legislation that we’ve moved through the parliament in July this year,” said Jones. “There’s been no change to our position.”
Strata: broker commissions not “the heart” of the problem
IB also asked about the recent ABC-TV Four Corners program that uncovered serious allegations of unethical conduct in the strata industry by strata managers and brokers.
Jones said he looked at the report closely.
“What appeared to me to be the problem there was not so much a problem inside insurance or even in broking but there are other issues that are there,” he said. “I don’t want to sweep them aside – that will need to be dealt with – but I don’t think the broker commissions was the issue at the heart in that particular problem.”
The NIBA Convention in Adelaide’s Convention Centre finishes today. The event is regarded by insurance brokers as their flagship industry gathering.
What do you think of the Minister’s position on broker commissions? Please tell us below
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