Most media outlets reporting last week’s Australian Securities and Investments Commission (ASIC) investigation into broker remuneration and commissions took the opportunity to take a swing at the industry – even if it meant stretching things.

The most notorious example last week was The Australian newspaper’s report which quoted Insurance Council of Australia President Michael Hawker saying the investigation will “find brokers who haven’t declared their commissions, and people in insurance companies who have done deals they shouldn’t have”.

But Mr Hawker, who is the CEO of IAG, says his comments were misconstrued. In a letter to the editor of The Australian, he said the headlines “IAG dumps on brokers” and “Probe will find dirt” didn’t reflect his comments.

He says he told the newspaper it was important for ASIC to conduct the inquiry in order to maintain confidence in the insurance industry generally.

“While there may be isolated problems in the market, I did not believe this was endemic or widespread. The intermediary market is an integral part of our business and of the insurance industry, and we place great value on the strong relationship we have with brokers.”

Meanwhile, National Insurance Brokers Association CEO Noel Pettersen flew out of Sydney last night for a meeting in Brussels, Belgium, with other leaders of the global broking industry. Mr Pettersen, who is the Asia-Pacific regional representative for the World Federation of Insurance Intermediaries council, said the meeting will examine the lessons of the New York investigations and the spate of inquiries being launched by regulators in many countries.

“The ASIC announcement of an inquiry into broking practices wasn’t unexpected,” he said. “But the negative tone of many media reports on the inquiry was disappointing, especially when you consider that ASIC is just doing what most of its counterparts around the world are doing.”