ACCC Strengthens Position Against Broker Commissions
ACCC Strengthens Position Against Broker Commissions
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.
In a recent submission to the professional code of practice review, the Australian Competition and Consumer Commission (ACCC) has reiterated its position against broker commissions.
Echoing findings from its 2020 Northern Australia Insurance Inquiry, the ACCC advocates for extending the ban on conflicted remuneration to include brokers.
The issue stems from the practice where broker commissions are often based on premium amounts, potentially discouraging brokers from pursuing more cost-effective coverage or options that pay lower or no commissions for clients. Despite full disclosure of such remuneration to consumers, the ACCC argues that the inherent conflict remains problematic.
ACCC Chair Gina Cass-Gottlieb, in the submission, underlined that while some consumers might resist an upfront fee akin to commissions, the transition challenges away from conflicted remuneration models do not justify retaining exemptions permitting them. This echoes a broader reform ethos initiated by the federal government in 2023, stipulating that brokers must secure client consent to receive commissions when providing personal advice.
NSW Fair Trading, in its independent review of strata sector practices, has also highlighted the need for the broking code of practice to enhance commission practices. Commissioner Natasha Mann advocates for bolstered disclosure obligations, promoting transparency in brokers' remuneration and ownership structures, coupled with robust compliance monitoring mechanisms.
Further perspectives include those from consultant John Trowbridge, who supports the continuation of commissions but emphasizes the necessity for brokers to transparently disclose all commission-related earnings. Trowbridge also suggests that the National Insurance Brokers Association offer guidelines to elucidate conflict management and fiduciary responsibilities within the industry.
The WA Small Business Development Corporation has expressed support for widening the disclosure requirements scope, advocating for the inclusion of small businesses. By aligning with the Australian Financial Complaints Authority rules, small enterprises, often with limited resources, stand to benefit from an expanded definition that enhances clarity on financial incentives influencing broker services.
The industry awaits further developments from the review, led by Phil Khoury, as its submission deadline approaches.
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.
Australia's construction sector remains under pressure, with recent insolvency figures continuing to show building and construction as one of the most exposed parts of the economy. Higher material costs, tight margins, labour shortages, delayed payments and fixed-price contract stress have all contributed to a tougher operating environment for builders, subcontractors and project owners. - read more
Recent transport industry sales updates point to a more selective new-truck market, with operators weighing replacement timing against finance costs, emissions planning, availability and contract confidence. For truck businesses, that matters well beyond the showroom. A change in buying momentum can flow through to vehicle values, repair economics, insurer appetite and the way fleets should set insurance sums before renewal. - read more
Fresh small business cyber warnings are a practical reminder that digital risk is no longer just a concern for large companies with complex IT systems. For Australian tradespeople, the most damaging cyber incident may be far simpler: a fake invoice, altered bank details, a compromised email account or a scam message that looks like it came from a supplier, builder, real estate agent or client. - read more
ASIC’s continuing focus on superannuation member services has put another practical issue in front of Australian workers: insurance inside super is not just about whether cover exists, but whether members can understand and use it when they need help. Recent regulatory attention on trustee administration, communication and claims support is a timely reminder for anyone relying on salary continuance or income protection benefits through their fund. - read more
Recent transport industry reporting has again highlighted growing interest in Performance Based Standards vehicles and other high-productivity truck combinations across Australia. For operators, the attraction is clear: fewer trips, better payload efficiency and stronger productivity on approved routes. For insurers, however, the shift is not simply a matter of adding another truck to the schedule. PBS combinations can alter exposure across vehicle value, route compliance, load responsibility, driver capability and recovery after an incident. - read more
Public liability insurance can help protect event organisers from the financial impact of third-party injury or property damage claims. In Australia, venues and councils may ask for proof of cover before an event can proceed, so it is important to understand how this insurance works and what to consider when arranging it. - read more
Today, we're diving into the world of public liability insurance, a crucial topic for anyone running a small business or working as a self-employed professional in Australia. - read more
As a business owner, one of your top priorities is safeguarding your enterprise from unforeseen events that could lead to financial liabilities. Liability insurance is the cornerstone of this protection, offering a safety net against claims that could otherwise derail your business's financial stability. However, it's not just about having insurance; it's crucial to ensure your coverage is current and adequate for your evolving business requirements. - read more
For Australian business owners, planning for unforeseen disasters is not just prudent; it's an essential aspect of sustaining operations amidst challenges. Recognizing the importance of comprehensive strategies, including robust insurance cover, can make all the difference in business longevity and legal protection. As we navigate the complexities of running a business, it's imperative to have a safeguard against mishaps that could otherwise jeopardize our hard-earned success. - read more
Welcome to our comprehensive guide on public liability insurance. If you run a business, you've probably heard this term thrown around quite often. But what exactly is public liability insurance? - read more
Start Here !
Knowledgebase
Claim: A formal request made by the policyholder to the insurance company for payment of a loss covered by the insurance policy.
No comments yet. Be the first to share your thoughts.