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.
NSW Fair Trading’s criminal proceedings against Network Strata Services Pty Ltd, trading as Netstrata, have pushed strata governance and insurance transparency back into the national spotlight. The regulator alleges the company and its director and licensee in charge breached statutory obligations connected with strata scheme management in New South Wales, including alleged failures around conflicts of interest, undisclosed financial benefits and information provided to the regulator. - read more
A fresh dispute over the proposed Insurance Brokers Code of Practice has sharpened the focus on transparency for Australian small businesses. Industry figure John Trowbridge has criticised gaps in the draft code, particularly around whether brokers should disclose commissions and other remuneration to all clients, not only those captured by narrower product or client categories. - read more
A recent Australian Financial Complaints Authority decision has put a spotlight on a detail that can be easy to overlook: how an income protection policy defines income. In the case, a policyholder receiving payments under an employer-arranged group income protection policy argued that regular sales commissions should be counted when calculating his pre-disability income. - read more
A fresh dispute over Australia’s insurance broking standards has put transparency back in the spotlight for small business policyholders, including personal trainers, fitness instructors and studio operators. On 17 July 2026, several consumer and strata owner groups withdrew from consultation on the National Insurance Brokers Association’s rewritten Insurance Brokers Code of Practice, arguing that industry self-regulation does not go far enough on conflicted payments and commission disclosure. - read more
Australia’s life insurance sector has welcomed the Federal Government’s updated expectations for APRA and ASIC, a policy signal that could shape how insurers balance consumer protection, affordability and innovation. The new expectations ask the regulators to keep the financial system safe and stable while also supporting competition, productivity and proportionate oversight. For life insurance customers, the practical question is whether that balance leads to clearer products, better service and cover that remains within reach. - 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 serves as a crucial safety net, guarding your loved ones against the unforeseen. Just as you would take care of your health through regular check-ups, it is equally important to ensure that your life insurance policy remains in sound condition to provide the necessary protection. - read more
Navigating the complex world of insurance can often feel daunting, but understanding the importance of life stage consideration when choosing life insurance is essential. As we journey through the various chapters of our lives, our financial responsibilities, dependents, and personal circumstances evolve. These changes invariably have significant implications for our insurance needs. - 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
Life insurance is a financial product designed to provide a safety net for your loved ones and business in the event of your passing. At its core, life insurance aims to deliver financial protection by paying out a lump sum or ongoing payments to a designated beneficiary upon the insured's death. - read more
Knowledgebase
Reinsurance: Insurance that an insurance company purchases from another insurance company to mitigate risk.
No comments yet. Be the first to share your thoughts.