Measures to identify and support vulnerable clients must be embedded in brokers’ operations, a compliance expert says. 

GM Code Compliance at the Australian Financial Complaints Authority Prue Monument told the National Insurance Brokers Association Convention last week that the broker code includes some “very important promises” on vulnerability in sections 10.1 and 10.2. 

She says factors influencing vulnerability include age, disability, mental health conditions, language barriers or cultural background. 

“Your code commits you to doing your best to identify vulnerability your clients may have. If your client says they need additional support or assistance, this says you’ll work with them to find a suitable way to proceed. This may include getting some support from a specialist third party. 

“You’ve committed to having internal policies and training so you and your people can better understand and recognise vulnerabilities.” 

Ms Monument says brokers need to think about how they are meeting “this call to action” and where they can improve. 

“There is absolutely nothing ‘tick-a-box’ about what you’ve committed to do here. These things need to be embedded in your day-to-day business. So you are going to have to think really carefully about your systems, your processes and your people.” 

Ms Monument says brokers have a head-start because they have strong relationships with clients and are used to helping them out “in their most difficult times”. 

“You know your clients better than anyone, and I guess a lot better than banks or insurers do.” 

She says the approach to vulnerability will be key as the broking industry looks to attract the next generation of talent. 

“Don’t underestimate what getting this right means in terms of your value proposition as an employer. 

“The recruits of today are paying attention to the type of values-based organisation that you are. They want to understand the broader social role that you play.”