Some insurance brokers not reporting complaints or breaches
Multiple insurance brokers reported no complaints or potential breaches of the industry Code of Practice in 2021, raising concerns for the independent body that monitors compliance with the Code.
The Insurance Brokers Code Compliance Committee (IBCCC), in its latest annual report, says it is concerned about the lack of self-reporting.
“Overall compliance with the Insurance Brokers Code of Practice is good. We remain concerned that subscribers are not recognising or reporting all their complaints and potential breaches”, Mr Oscar Shub, Chair of the IBCCC, said.
“Reporting potential breaches and complaints is crucial for improvement. It allows a broker to see what went wrong and where they need to improve. However, it appears we still have too many who fail to recognise its importance.”
“And it may be a matter of training or better procedures that can help. Better reporting begins with having staff be able to confidently recognise complaints and breaches and having the right procedures in place to facilitate it.”
The IBCCC hopes a new version of the Code, which takes effect from 1 November 2022, will help to improve reporting across the board.
“The new Code has more specific provisions that will ensure brokers have a very clear understanding of their obligations,” Mr Shub said.
“We have already seen some great improvements from brokers preparing for the new Code and we encourage all brokers to make sure they have the right processes in place by the time the new Code comes into effect.”
Improvement has been partly the result of the IBCCC stressing cultural change – encouraging brokers to develop a culture that embraces reporting in pursuit of better outcomes.
“Culture really is the driving force behind compliance, as our report ‘Culture is Key’ shows,” Mr Shub stated.
“When a company culture values transparency and embraces the benefits that come from self-reporting complaints and breaches, we start to see real, meaningful improvements. Ultimately, this leads to better services and products for clients.”
The IBCCC’s work on culture and compliance remains a focus as it welcomes the new Code published by the National Insurance Brokers Association.