Call for Stricter Timelines on Insurance Claims and Renewals
Call for Stricter Timelines on Insurance Claims and Renewals
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.
The Insurance Brokers Code Compliance Committee is advocating for significant changes to improve transparency and clarity in their industry standards, amidst ongoing reviews of the National Insurance Brokers Association (NIBA) code.
This call to action coincides with the recent closure of feedback collection from stakeholders, setting the stage for a draft report expected next month.
A major focus of the committee's recommendations is the enhancement of protection for small business clients. Currently, remuneration disclosure requirements are predominantly aimed at retail clients; however, the committee argues that small businesses should also be afforded the same level of transparency.
Another key area highlighted by the committee is the need for stricter timelines around claims and renewals. Presently, brokers are expected to “keep clients informed in a timely manner regarding the progress of their claim,†as stated in clause 7.1. However, the committee suggests a more specific commitment of providing updates every 20 business days. Additionally, they advocate for increasing the notification period for policy renewals from the current 14 days before expiry to a minimum of 30 business days in advance.
These proposed time frames are designed to align client expectations with broker obligations, fostering informed decision-making and improving the overall client experience. The committee emphasizes that such measures will enhance trust in brokers and minimize the risk of lapses in coverage.
Breach and complaint identification, along with reporting, are also under scrutiny in the committee's submission. It urges brokers to report all breaches, including those by representatives, and calls for improved training regarding the code. “Named reporting†on breaches is one of the committee's key recommendations, aiming to enhance transparency and promote better compliance practices. This approach allows firms to benchmark their performance against peers, highlighting industry outliers.
To support these initiatives, the committee proposes securing sufficient funding, enabling them to conduct their own independent investigations and reviews, arguing that reliance solely on self-reported data is inadequate for effective compliance monitoring.
The committee mentions potentially extending the code review period from the current three years to five years, contingent upon the code's approval by the corporate regulator. Such changes are intended to provide a more robust framework for oversight in the industry.
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.
Recent transport industry reporting has again drawn attention to load restraint, with regulators and enforcement agencies continuing to highlight the risks created by poorly secured freight. For Australian truck operators, the issue is broader than avoiding roadside penalties. A load that moves, spills or falls can quickly become a vehicle damage, cargo, public liability, injury and business interruption problem. - read more
Australia's construction sector continues to face pressure, with recent business reporting again pointing to elevated insolvency risk among builders and related operators. For tradespeople, that is not just a headline about another company's balance sheet. A builder collapse can quickly become a practical problem for subcontractors who have materials on site, tools locked in a compound, unpaid invoices, unfinished work and unclear responsibility for damaged or abandoned projects. - read more
APRA's latest life insurance claims and disputes statistics have again put the practical side of personal cover in front of Australian workers. While headline numbers often focus on the overall performance of life insurers, the data is especially relevant for anyone relying on income protection insurance or salary continuance cover to keep household cash flow steady after illness or injury. - read more
Recent heavy vehicle industry reporting has again highlighted roadside compliance activity, with enforcement attention on mechanical condition, fatigue records, load restraint and day-to-day maintenance evidence. For truck operators, the message is broader than avoiding an infringement. A defect notice, preventable breakdown or poorly documented maintenance program can also shape how an insurer views risk when cover is renewed or when a claim is assessed. - read more
Renewed industry pressure to reduce insurance taxes has put affordability back in the spotlight for rural and regional Australia. The latest debate centres on the extra costs added to insurance through state-based duties, levies and other charges, which can make already expensive cover harder to maintain for households and businesses exposed to flood, bushfire, storm and cyclone risk. - read more
Liability insurance is a crucial form of protection that offers coverage against claims resulting from injuries and damage to people or property. Within the bustling landscape of Australian businesses, possessing this form of insurance is key to financial security and continuity. It acts as a safety net, ensuring businesses can manage risks without bearing the full brunt of potentially costly legal claims. - 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
Liability insurance is not automatically mandatory for every Australian business, but it can be required by law, licence conditions, contracts, leases, tenders, professional rules or event permits. This guide explains when cover may be compulsory and how to check your obligations. - read more
Public liability insurance is an integral safety net designed to protect businesses from the financial risks associated with lawsuits or claims. It provides coverage when a business is found legally responsible for personal injury to a third party or damage to their property. This form of insurance can significantly reduce the burden of legal fees, compensation claims, and other associated costs that may arise from unforeseen incidents. - read more
Liability insurance can cover different business risks depending on whether a claim involves third-party injury, property damage, professional advice or products supplied. This guide explains the main types of liability insurance in Australia and how they differ. - read more
Start Here !
Knowledgebase
Premium: The amount paid for an insurance policy, usually on a regular basis, to maintain coverage.
No comments yet. Be the first to share your thoughts.