About the Committee
The Insurance Brokers Code Compliance Committee
The Insurance Brokers Code Compliance Committee (the Committee) is an independent body that monitors compliance with the Insurance Brokers Code of Practice. Our purpose is to ensure consistent and high-quality service standards are maintained for the benefit of consumers. This also works towards increasing trust and confidence in the insurance broking industry.
The Committee’s functions and powers are set out in the Code, the Deed and the Charter. They include:
- monitoring compliance with the Code to determine if there is a breach of the Code
- investigating alleged breaches of the Code unresolved by the Code Compliance Manager
- engaging in the other functions set out in the Charter, including the preparation of reports such as the Annual Report.
The Committee has the authority to impose sanctions on insurance brokers who breach the Code and fail to take corrective action. The Committee conducts robust monitoring so consumers know that subscribers will be held to account for breaches.
The Committee supports insurance brokers to achieve good practice in service and advice to their clients, independently monitors compliance and provides guidance to stakeholders about the Code.
The Committee shares information about its functions and activities as well as any investigations or inquiries the Committee is conducting. The Committee works with the National Insurance Brokers Association (NIBA), the Australian Financial Complaints Authority (AFCA) and Code subscribers to carry out the functions of its role.
- independently monitors compliance
- provides guidance to stakeholders about the Code
- enhances professionalism
- maintains high standards of practice and service in the insurance broking industry.
The Committee undertakes a wide range of activities to effectively administer and enforce the Code.
The Code empowers the Committee to investigate any complaints alleging an insurance broker has breached the Code. The Committee may also initiate its own investigation if an issue has been identified through compliance monitoring or AFCA determinations.
These investigations aim to identify:
- the cause of alleged Code breaches
- whether the complaint indicates broader compliance issues with the Code subscriber or across the industry in general
- the effectiveness of Code subscribers’ remedial actions to minimise the impact of breaches on clients.
Annual Compliance Statement
The Annual Compliance Statement is a self-assessment tool that helps subscribers review their compliance with the Code obligations every year.
It reflects on services provided to clients and the insurance broker’s own professionalism. It is designed to validate the Code subscriber’s compliance programs focusing on how effectively they identify, report and remedy breaches of the Code.
Results from the Annual Compliance Statement help the Committee to benchmark the industry and develop categories within the various subscriber groups.
Own Motion Inquiries
The Committee can also undertake its own inquiries, which we call Own Motion Inquiries. These types of investigations do not depend on a specific allegation.
The Committee publishes annual reports that detail the previous year’s activities, outcomes of compliance monitoring and the focus of future operations. You can read the reports here.
The Committee is supported by the Code Compliance and Monitoring Team (Code Team), a separate business unit of the Australian Financial Complaints Authority (AFCA). The Code Team helps by engaging with subscribers and stakeholders, conducting monitoring activities, investigating alleged breaches and providing administrative support.