Brokers Tackle Compliance Surge Amid New Regulations
Brokers Tackle Compliance Surge Amid New Regulations
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 National Insurance Brokers Association (NIBA) has reaffirmed its members’ dedication to adhering to their code of practice commitments in response to a notable surge in reported breaches.
This development follows the committee’s latest call for enhanced compliance and reporting standards.
According to insuranceNEWS.com.au, the association contends that the recent uptick in breaches was expected as a result of numerous new obligations embedded within the revised 2022 code. According to NIBA, this demonstrates an industry adjusting to more rigorous expectations.
Yesterday, the Insurance Brokers Code Compliance Committee (IBCCC) released its annual data report, highlighting an increase in breaches. Specifically, 63.4% of insurance brokers reported breaches in the preceding year, up from 55.2% in 2022. The total number of breaches escalated by 36% to 4642, impacting 794,000 clients as opposed to 412,081 the prior year.
A particular area of concern flagged by the committee was remuneration disclosure, with 106 breaches reported compared to just 23 cases a year earlier.
"The data in our report should be seen as a wake-up call," said committee chair Oscar Shub. "Brokers must emphasize robust compliance and reporting procedures to enhance service quality and maintain client trust."
On the rising remuneration breaches, Mr. Shub added, "This significant increase signals that brokers must improve their practices."
NIBA has expressed encouragement over the growing trend of brokers reporting their breaches. The body noted a more than 26% increase in the number of subscribers self-reporting since 2020.
"Given the considerable number of new obligations introduced with the revised code, an increase in reported breaches was anticipated," NIBA explained. "The data from the IBCCC shows that the profession is actively considering and adapting to higher standards, aiming to better fulfill client needs."
While NIBA acknowledges ongoing needs for improvement, it plans to collaborate with subscribers and the IBCCC over the coming year to foster greater transparency and enhance compliance reporting habits.
Providing a contrastive perspective, Insurance Advisernet MD Shaun Standfield expressed disappointment in the IBCCC’s critical stance on compliance outcomes. He noted, “The committee should recognize our efforts in promoting breach awareness and reporting. It’s disheartening to receive mixed signals when we've almost tripled reportable breaches over three years."
Mr. Standfield cautioned that such criticism might dissuade brokers from reporting breaches faithfully. "We do not want our advisers to backtrack on reporting for fear of negative commentary from the IBCCC. Despite the surge in reported breaches, brokers work diligently to serve their clients every day," he concluded.
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.
Australia's Compensation Scheme of Last Resort (CSLR) is facing significant pressure due to a surge in claims linked to failed financial products. This uptick has led the Insurance Council of Australia (ICA) to call for structural reforms to ensure the scheme's sustainability. - read more
Australia's financial services sector is currently experiencing a notable increase in professional indemnity (PI) claims, driven by intensified regulatory scrutiny and recent legal actions. This trend has significant implications for professionals and insurers operating within the industry. - read more
Effective 1 July 2026, all registered building practitioners in New South Wales (NSW) will be mandated to hold professional indemnity (PI) insurance, as stipulated by the Design and Building Practitioners Act 2020. This legislative change aims to enhance accountability and protect clients from potential financial losses due to professional negligence or defects in construction work. - read more
In a significant development for New South Wales' housing sector, Productivity Commissioner Peter Achterstraat has called for the prompt elimination of commissions received by strata managers. This recommendation aims to bolster transparency and affordability within the state's burgeoning strata housing market. - read more
In its recently released 2025 State of the Strata Market report, CHU, Australia's leading strata insurance underwriting agency, provides an insightful analysis of the current landscape of strata insurance. The report underscores a notable stability in strata insurance premiums, which have seen a modest increase of 2.8% over the past year, rising from $954 to $981 per lot annually. This increment is significantly lower than the 14% surge observed in house insurance premiums during the same period. - read more
Financial security is one of the most important aspects of modern family life. Ensuring that loved ones are protected and well-supported in the event of an untimely death is a fundamental concern for many Australians. - read more
Shareholder agreements lay the cornerstone for stable business relationships and continuity in Australia. Acting as a contract among business owners, these agreements set forth the expectations, rights, and obligations of all parties involved. They are particularly vital in delineating clear paths for dispute resolution, succession planning, and the transfer of ownership shares under varied circumstances, including the untimely death or departure of a shareholder. - read more
Life insurance is one of those cornerstones of financial planning that often gets overlooked. Yet, the importance of life insurance in safeguarding your family's future cannot be overstated. It's a robust financial instrument that provides peace of mind, knowing that your loved ones will be financially secure in the event of your untimely passing. This introductory section lays the groundwork for understanding why life insurance is pivotal in your family's financial health. - read more
Life insurance is a critical component of a sound financial plan. It provides financial security and peace of mind to you and your loved ones, ensuring that they are taken care of in the event of your untimely death. - read more
Financial security for families is an essential consideration in any household. Life can be unpredictable, and ensuring that your loved ones are protected from financial hardship in your absence is a critical part of financial planning. - read more
Knowledgebase
Public Liability Insurance: A very broad term for insurance covering liability exposures for individuals and business owners. It provides broad coverage, generally including all exposures for property damage and bodily injury.
