Insurance Brokers need to embrace a culture of reporting
The Insurance Brokers Code Compliance Committee (IBCCC) has urged insurance brokers to recognise the importance of reporting breaches following a concerning finding in its latest Annual Data Report.
The IBCCC’s report, which looks at the performance of insurance brokers subscribed to the Insurance Brokers Code of Practice, found that more than half reported zero breaches for the 2021 period.
Chair of the IBCCC, Oscar Shub, explained that reporting breaches was an important aspect of compliance.
“While reporting zero breaches of the Code may sound impressive, it does not necessarily mean a subscriber is doing well,” Mr Shub said.
“It generally means that there are deficiencies in the processes and systems used to monitor compliance. We know that breaches will occur from time to time, even with the best compliance frameworks in place. So, reporting no breaches does not reflect perfection as much as it reflects poor monitoring and a failure to embrace a culture of reporting.”
Mr Shub highlighted that a culture of reporting allowed subscribers to learn, improve and raise standards in the industry.
“We know that subscribers that really embrace reporting have made vast improvements,” he said.
“They have learned lessons from their breaches and have processes and systems to minimise them and pursue good outcomes for clients.”
The Annual Data Report revealed that some subscribers limit reporting Code breaches to certain staff.
Mr Shub emphasised the importance of ensuring everyone felt responsible for identifying and reporting breaches of the Code.
“Put simply, identifying and reporting breaches and complaints is everyone’s job,” he said.
“A good compliance culture needs staff at all levels capable of identifying and reporting. Leaving it to certain teams or individuals undermines efforts to properly monitor compliance and does not produce the results we want to see.”
As the IBCCC’s Annual Data Report provides a comprehensive look at the data from subscriber’s Annual Compliance Statements, it can be used to increase awareness of issues and develop better practices that achieve good outcomes for clients.
“The data in the report is truly valuable for any subscriber,” Mr Shub said.
“Although the report may appear long, the content provides insights and lessons that all in the industry should take notice of. And it demonstrates that the Annual Compliance Statement is more than a mere administrative exercise in box-ticking – it is an important aspect of governance that allows subscribers to review, assess and strengthen their compliance.”
The IBCCC’s 2021 Annual Data Report offers a unique look at the industry across the 12-month period, highlighting areas of success and areas in which improvement is needed.