The Insurance Brokers Code Compliance Committee has produced a five-point guide to identifying and assisting vulnerable clients.

Supporting vulnerable clients is a commitment in the updated code of practice, which came into force in November 2022.

The guide covers executive oversight; skills and capabilities; policies and procedures; inclusive service design; and ongoing review and improvement.

“Everyone is at risk of experiencing vulnerability at any time,” the guide says. “Insurance brokers play a crucial role in identifying, acknowledging, assisting and advocating for vulnerable individuals.”

The committee says a survey it conducted in 2022 found about half of all broker subscribers had established a dedicated vulnerability policy or process, while the rest were developing them.

It says the guide is designed to help brokers meet their obligations under the code.

“Brokers must ensure they conduct their interactions with vulnerable clients with sensitivity, dignity, respect and compassion,” the guide says. “And when it is appropriate, brokers can refer vulnerable clients to specialist services.”

At the executive oversight level, brokers should set out in their strategy or operational plans how they effectively identify and support clients experiencing vulnerability.

“This must include relevant staff training and support. Brokers should publish their action plans, sending a strong message about commitment and accountability.”

In relation to skills and capability, the guide says there is “no one-size-fits-all” approach. Staff should be able to adapt to client needs and exercise judgment on appropriate responses.

“Training is essential for equipping staff with the skills to recognise vulnerabilities and respond appropriately,” the guide says.

The Australian and New Zealand Institute of Insurance and Finance says it supports the guide.

“Being part of a professional community focused on good customer outcomes is something we are passionate about,” CEO Katrina Shanks said.

Click here for the guidance.