‘Widespread good practice’: brokers have strong company culture, IBCCC says
Widespread good practice: brokers have strong company culture, IBCCC says
30 November 2022
Brokers scored well in a culture survey, with the findings reflecting most have “widespread good practice” that drives compliance and achieves good client outcomes, the Insurance Brokers Code Compliance Committee (IBCCC) says.
About 76% of 415 Code subscribers surveyed have procedures to identify breaches or potential issues, 67% use checklists to ensure they provide clients with the necessary information and 66% use regular internal staff training to highlight and learn from past Code breaches.
More than half (56%) have a higher internal standard for sending out policy renewal notices than the legal 14-day minimum. Of the brokers that used a higher standard, around two-thirds (66%) sent renewal notices either 21, 28 or 30 days before expiry.
When it comes to fee disclosure, some 57% provide clients with information in plain English. In the most comprehensive examples, subscribers reported including the information in detail on client invoices, with a full breakdown of premiums, fees and commissions.
“The report highlighted several findings that indicate widespread good practice among insurance brokers,” IBCCC says.
National Insurance Brokers Association CEO Philip Kewin says the findings are “very encouraging” as it shows brokers are setting standards above the minimum as well as learning from past breaches.
“Considering the introduction of the new Code of Practice and a renewed focus on process, procedures and compliance, we should see continuous improvement and ongoing development,” he said.
NIBA’s new Code commenced last month, replacing the 2014 version with more measures to strengthen consumer protections.
IBCCC says the survey also found areas where brokers can improve further. It says subscribers should consider incorporating multiple methods for training staff; strive to be proactive in their monitoring, avoiding the inertia created by assuming everything is fine until there is a significant adverse event; and continue to look out for systemic breaches.
Click here for the report.
