IBCCC calls on brokers to "embrace a culture of reporting"

The Insurance Brokers Code of Compliance Committee (IBCCC) has urged Australian insurance brokers to report breaches following the concerning results of its latest annual data report.

The report, which analysed the performance of insurance brokers subscribed to the Insurance Brokers Code of Practice, found that over half of the brokers reported zero breaches in 2021.

IBCCC chair Oscar Shub said reporting breaches was a significant aspect of compliance.

“While reporting zero breaches of the code may sound impressive, it does not necessarily mean a subscriber is doing well,” Shub said. “It generally means that there are deficiencies in the processes and systems used to monitor compliance. We know that breaches will 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.”

Benefits of embracing a “culture of reporting”

Shub said a culture of reporting enables insurance brokers to learn, improve, and raise standards.