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

Farm Insurance Pressure Builds as Affordability Concerns Return

12 Aug 2026: Paige Estritori

Renewed rural industry attention on insurance affordability is a timely warning for Australian farm businesses preparing for renewal season. Premium pressure is not only a household issue in regional areas; it can affect the commercial reality of running a farm, from insuring sheds and machinery to protecting stored produce, livestock infrastructure and liability exposures. - read more

What the Life Insurance Code review means for policyholders

12 Aug 2026: Paige Estritori

The continuing review of Australia's Life Insurance Code of Practice has become more than an industry governance exercise. For policyholders, it is a timely reminder that the real value of life insurance depends on what happens at underwriting, at renewal, and especially when a claim is made. - read more

Cyclone Cover Debate Highlights Strata Insurance Pressure Points

12 Aug 2026: Paige Estritori

The latest industry attention on Australia's cyclone reinsurance arrangements is a timely reminder that premium relief for strata schemes is rarely driven by one policy lever alone. The cyclone pool was designed to reduce insurer exposure to cyclone-related losses in higher-risk regions, particularly across northern Australia. However, for owners corporations and body corporates, the practical impact can still vary sharply from building to building. - read more

Why Apartment Defect Scrutiny Matters for Strata Insurance

12 Aug 2026: Paige Estritori

Renewed attention on apartment building defects is a timely reminder that strata insurance is not assessed in isolation from the physical condition of a scheme. For owners corporations and body corporates, the issue is not only whether cover is in place, but whether the building can be clearly presented to insurers as a well-managed and understood risk. - read more

Insurance Complaint Trends Put Policy Clarity Back in Focus

12 Aug 2026: Paige Estritori

Fresh complaints data from the Australian Financial Complaints Authority has again put pressure on the general insurance sector, with policy disputes, delays and communication breakdowns remaining a major source of frustration for customers. For Australian tradies, the headline is not just that complaints are being lodged; it is that many disputes appear to begin with mismatched expectations between what a policyholder thought was covered and how the insurer interpreted the wording when a claim arrived. - read more

Click for more Insurance News