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IBD begins code enforcement

Insurance Brokers Disputes (IBD) has announced plans for auditing the new Insurance Brokers Code of Practice.

The updated code has been in force since the start of this year, and IBD Compliance Manager Philip Field says brokers should be double-checking all their processes to ensure they are in compliance. They should take particular care with issues of premium funding and cancellation refunds.

“IBD Referee David Letcher has previously raised these two areas as being of concern,” he said.

IBD will conduct a random audit of 100 brokers in November, its first substantial investigation since the code of practice was adopted. But Mr Field says businesses that are not selected cannot just relax.

“We may choose to extend the sample size to all code subscribers, depending on the results of the first sample.”

IBD is also reviewing the internal dispute mechanisms of subscribing organisations and will complete a separate 100-broker audit on that issue.