The Insurance Brokers Code Compliance Committee has again told the industry to raise its game on the monitoring and reporting of breaches. 

The independent committee released a new guide on breaches and complaints reporting yesterday, and says it expects brokers to show an improvement when they submit their annual compliance statements later this year.

In the 2022 annual compliance statements, 45% of brokers reported no breaches and 39% said there were no complaints, prompting the committee to question the thoroughness of self-assessment. Late last year the committee released a report after surveying subscribers.

“This guidance addresses a critical concern: the prevalence of brokers reporting zero breaches and complaints. Through this guidance, we emphasise the importance of reporting all breaches and complaints and offer recommended practices for brokers,” the guide says.

“Brokers should use this guidance to help review their reporting practices, improve processes, embrace a culture of compliance, and deliver better client outcomes.”

Committee chair Oscar Shub says it is imperative that brokers uphold the highest standards of transparency and accountability.

“Reporting zero breaches and complaints throughout an entire year is not indicative of flawless compliance but rather raises questions about the effectiveness of internal reporting mechanisms,” he said. “To make improvements and to work towards practices that deliver better outcomes for clients, it is essential that brokers identify and report any breaches or complaints.”

The National Insurance Brokers Association, which owns the industry code of practice, says it supports the push.

“Accurate reporting not only instils community trust but also serves as learning and development opportunities for brokers, while providing good insights into the practicality and effectiveness of the code itself to aid future enhancements,” CEO Phil Kewin told insuranceNEWS.com.au today.

“This year’s annual compliance reporting will be the first full year of the new Insurance Brokers Code of Practice and we hope the greater clarity and guidance in the new code will help deliver improved reporting outcomes.”

The guide says all breaches and complaints must be reported and lists ways in which brokers can improve their reporting mechanisms.

On breaches, it says mistakes happen for all brokers, and it would be unusual to go a year without a single breach of the code.

“We are concerned that this [low number of breach reports] may reflect oversights or gaps in systems and processes and potentially a culture of not reporting,” the guide says. “Reporting all breaches encourages brokers to take corrective action, learn from errors, improve processes, and adopt higher standards of practice.”

On complaints, the guide says too many brokers do not understand they must report all cases, including ones about insurers or that were resolved immediately.

“For a comprehensive understanding of their role in a client’s experience, a broker must record and report complaints about insurance providers. The broker should consider whether their own conduct may have contributed to the situation that gave rise to the complaint,” the guide says. 

Click here for the guide.