The public doesn’t distinguish brokers from underwriters, so the industry needs to work together to build its strengths, says new National Insurance Brokers Association President Steve Ball.

He told delegates at last week’s Insurance Council of Australia NSW conference that the Australian Securities and Investments Commission’s (ASIC) review of broker remuneration payments “isn’t going to go away”, and the industry needs to work together to manage the situation.

ASIC demanded information from 12 brokers and six insurers when it announced its investigation late last year. The investigation was spurred by action in the US, where it was discovered brokers were taking part in bid-rigging and other unsavoury business deals.

But Mr Ball says the “motives of brokers are sometimes misunderstood”, and they should be wary of the way they conduct their business. “The broker’s dilemma is, the better you do the job, the less you get paid.

“Take care with indirect rewards,” he said. “Be genuine and make sure you disclose all indirect rewards.”

He says the companies ASIC requested information from were disappointed there was “ambiguity in the way material they provided may be interpreted”.

Although ASIC planned to have the investigation completed by March, it is unlikely the deadline will be met, he said. “I’d guess it would more likely be released in the second quarter.”