Brokers have made little progress improving complaints processes, the industry’s Code Compliance Committee says in a follow-up to last year’s “own motion inquiry” into internal dispute resolution.

Many of the independent committee’s previous recommendations have not been widely implemented.

“The code [of practice] exists to promote professional competence and a high standard of service among insurance brokers, thereby increasing consumer confidence in the industry,” the committee’s report says.

“An effective internal dispute resolution process is fundamental to these goals. By handling complaints and disputes effectively and fairly, insurance brokers can demonstrate they are accountable to clients. At the same time, organisations can draw on the feedback from complaints to drive improvements to their service.”

Complaints processes could be more client-friendly and be used for reasons beyond merely resolving disputes. Brokers should also consider how they can build better businesses and client trust after client complaints.

The committee says more should be done to help clients who have English language difficulties or special needs.

Only about 40% of brokers utilise readily available resources such as translators.

“Organisations should have a written procedure outlining how special needs will be addressed, even if such needs have not arisen previously,” the committee's report says.

“This ongoing lack of preparedness to assist clients with special needs is concerning.

“The committee notes that providing assistance need not be complex or resource-intensive.

“Organisations should make their staff aware of simple steps that can be taken, which include referring the client to support services, engaging an interpreter or making simple accommodations such as printing communications in a larger font.”

The National Insurance Brokers Association, which owns the code, has noted the committee’s recommendation.

“I’m sure many brokers will have clients who don’t have English as a first language or have other special circumstances or special needs,” CEO Dallas Booth told insuranceNEWS.com.au today.

“I am confident brokers by and large would be doing their very best to look after their clients, but I think we have to take note of the commentary in the report and to see what we can learn from that and see what we can do better in the future.”

Mr Booth is pleased with the committee’s findings, based on an online survey that drew 286 responses. About 80% of brokers use complaint case studies for analysis and internal discussion, and 73% provide regular complaints handling training to staff.

“It certainly paints a positive story of the extent to which brokers take this seriously,” Mr Booth said. “There is no doubt it is a positive report, but clearly the report indicates potential areas for improvements and I think we need to take that on board and see what we can do.”

To read the committee’s report, click here.