Monitoring Code breaches
How the Insurance Brokers Code Compliance Committee (the Committee) monitors compliance
The Committee is an independent body that monitors adherence to the Code while also providing education and support to subscribers. The Committee works proactively with subscribers to guide compliance improvements. The Committee has the authority to sanction insurance brokers if they do not take corrective action after breaches. Find out more information about the Committee here.
The Committee has oversight of subscribers’ culture through its Code monitoring and investigation functions and responsibilities.
Each year, participating insurance brokers complete our Annual Compliance Statement (ACS), which documents their Code compliance performance.
The ACS questionnaire is developed in collaboration with insurance brokers to help them effectively self-assess their compliance with the Code. The Committee then reviews their responses to assess:
- how effectively they have complied with their Code obligations
- the strength of their Code compliance monitoring frameworks
- how effectively they have monitored their compliance against Code obligations
- instances of non-compliance and how they were fixed
- emerging or significant risk to their compliance with Code obligations
- areas of good practice that can be shared with industry.
Our verification program tests and validates insurance brokers’ Code compliance programs, including how effectively they identify, report and fix breaches of the Code.
The Committee regularly reviews insurance brokers’ compliance with Code obligations through our Own Motion Inquiries. We report on these reviews to share our experience with the industry and encourage good practice. It also enables us to provide learning opportunities when we have identified areas of improvement. We initiate an inquiry when an area of emerging risk is identified in the insurance broking industry.